Question

a farmer borrows 10000 from the post office at the interest of 8% per annum and paid 12000 for clearing his loan. how much time did he take?

Answer 1

Given :-

• A farmer borrows 10000 from the post office at the interest of 8% per annum and paid 12000 for clearing his loan.

To find :-

• Time did farmer take

Solution :-

• Amount (A) = Rs.12000

• Rate of interest (R) = 8%

• Principle (P) = 10000

• Time (T) = ?

As we know that

→ Amount = Principle + Simple interest

→ A = P + S.I

Put the values

→ 12000 = 10000 + S.I

→ 12000 - 10000 = S.I

→ S.I = Rs.2000

Hence,

• Simple Interest is Rs.2000

Now,

→ Simple interest = Principle × Rate × Time/100

→ S.I = P × R × T/100

Substitute the value of S.I, Rate, Time, and Principle

→ 2000 = 10000 × 8 × T/100

→ 2000 = 100 × 8 × T

→ 2000 = 800 × T

→ T = 2000/800

→ T = 20/8

→ T = 5/2

→ T = 2 ½ years

Hence,

• Time did farmer take i.e 2 ½ years