Question

A man borrowed Rs. 2,400 at 12% interest per annum. At the end of; years he cleared his account by paying Rs. 1,200 and a ring. Find the cost of the ring.
A) 1720
B) 1820
C) 1920
D) None of these

Answer 1

The money borrowed by the farmer (principal) = Rs 2400

Rate of Interest = 12% p.a.

Time (duration) of interest = 1 year

Interest = p * r * t / 100

            = (2400 * 12 * 1) / 100

            =  288

Amount = P + S.I.

            = 2400 + 288

            = Rs 2688

A/q,

=> Amount paid = 1200 + cost of ring

=> 2688 = 1200 + cost of ring

=> cost of eing = 2688 - 1200 = 1488

So, the cost of the cow is Rs 1488

Answer 2

C) 1920 is the answer