Question

A farmer takes a loan of 8400 at the simple interest rate of 7 1/2% per annum. After what time will he have to pay 10920 to clear the debt?​​

Answer 1

Answer:

4 years

Step-by-step explanation:

Principal (P) = ₹8400

Amount (A) = ₹10920

Simple Interest (SI) = A-P = ₹10920 - ₹8400 = ₹2520

Rate (R) = 7½ % = 15/2 %

Let the time be T.

SI = PRT/100

=> 2520 = 8400 × 15/2 × T/100

=> 2520 = 630 × T

=> T = 2520/630

=> T = 4 years