Question

Jamie borrowed $1500 from his brother and agreed to pay back after three years at 12% per annum simple interest.whatvisvthe total amount that Jamie should pay back?​

Answer 1

Answer:

Given details are,

C.I that Jamie receives = Rs 210

S.I that Jamie paid = Rs 200

Time = 2 years

So,

We know, SI = PTR/100

= P×2×R/100

P×R = 10000 ………….. Equation 1

CI = A – P

CI = P [(1 + R/100)n – 1]

210 = P [(1 + R/100)2 – 1]

210 = P (12 + R2/1002 + 2(1)(R/100) – 1) (by using the formula (a+b)2)

210 = P (1 + R2/10000 + R/50 – 1)

210 = P (R2/10000 + R/50)

210 = PR2/10000 + PR/50

We know PR = 10000 from Equation 1

210 = 10000R/10000 + 10000/50

210 = R + 200

R = 210 – 200

= 10%

In Equation 1, PR = 10000

P = 10000/R

= 10000/10

= 1000

∴ Required sum is Rs 1000