Question

Answer the question given in attachment​

Answer 1

For 1st year
P = ₹2500
R= 12%
T= 1 year
I= 2500*12*1/100
I= ₹300

Amount= 2500+300= ₹2800

For 2nd year
P= ₹2800
R= 12%
T= 1 year
I= 2800*12*1/100
I= ₹336

Amount = 2800+336 = ₹3136

Therefore, amount paid by A to B = ₹2936

The amount of the watch = ₹3136- ₹2936 = ₹200

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