Question

ILLICOLULIULUI
26. Peter borrow 250000 from the bank at the rate of 12 % per annum simple interest. After 5 years
gave his motorcycle and 125000 in cash and settled his account. How much did he get from his
motorcycle.

​

Answer 1

Answer :

3,15,000

Explanation :

Peter borrowed,

• ₹2,50,000

For,

• 5 years

At the rate of,

• 12% p.a.(per annum)

At the end of 5 years he pays 1,25,000 and a motorcycle. Find how much he gets from the motorcycle.

Let's calculate the amount which is payable at the end of 5 years.

$\sf \longrightarrow Amount = p\bigg(1 + \dfrac{r}{100}\bigg)^n$

Where,

• p(principal) = 2,50,000
• r(rate) = 12%
• n(time) = 5 years.

On substituting the given values,

$\sf \longrightarrow 2,50,000\bigg(1 + \dfrac{r}{100}\bigg)^5$

$\sf \longrightarrow 2,50,000\bigg(\dfrac{12}{100}\bigg)^5$

$\sf \longrightarrow 2,50,000\bigg(1.12\bigg)^5$

$\sf \longrightarrow 2,50,000\big(1.76\big)$

$\sf\longrightarrow 4,40,000$

∴ The amount payable after 5 years is ₹4,40,000.

Now,

Given payment of Peter is :-

• 1,25,000 + a motorcycle.

[ Assuming $x$ as the cost of the motorcycle ]

So, we can say that

$\implies 4,40,000 = 1,25,000 + x$

$\implies 4,40,000 - 1,25,000 = x$

$\implies 3,15,000 = x$

∴ Peter gets ₹3,15,000 for the motorcycle.