Question

A farmer takes a loan of Rs 8400 at a simple interest rate of 7 1/2% per annum. Acter how many years will he have to pay Rs 10,920 to clear the debt?​

Answer 1

Answer:

The difference between both the amount will be interest.

so, 10920–8400 = 2520 (interest)

Formula for the simple interest is:-

Simple Interest = Principal * Rate * Time

PUT THE VALUE IN THE FORMULA.

2520= 8400 * 7.5/100 * Time

2520*100=63000 * Time

Time = 4 Years.