Question

A farmer for purchasing seeds and fertilizer borrowed a loan from cooperative bank after 2 years he paid 5434 and settled the account if the rate of simple interest is to 2.25% per annum what sum did he borrow

Answer 1

Step-by-step explanation:

A=5434 n=2 i=2.25% P=?

A=P(1+i)to the power n

5434=P(1+0.0225)x(1+1.0225)

5434=P(1.0225)

P=5434/1.0225

P=5197.5

So the amount borrowed is 5197.5