Question

Ken borrowed $2000 from Sam at 8% per annum. After 6 year he cleared the amount by giving $2600 cash and a watch. Find the cost of the watch

Answer 1

Given :

Principle : $2000

Rate of interest : 8%

Time : 6 years

Amount paid by cash : $2600

The watch was also given with it.

To find :

The cost of the watch.

Solution :

First, we should find the total amount to be paid by Ken. To find the total amount, first we should find the simple interest.

Simple interest :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow \dfrac{2000 \times 8 \times 6}{100}$

$\sf \dashrightarrow \dfrac{2000 \times 48}{100}$

$\sf \dashrightarrow \dfrac{2000 \times 12}{25}$

$\sf \dashrightarrow \cancel \dfrac{24000}{25} = 960$

Now, we should find the total amount.

Total amount to be paid :

$\sf \dashrightarrow Simple \: Interest + Principle$

$\sf \dashrightarrow 960 + 2000$

$\sf \dashrightarrow Rs.2960$

Now, we can find the cost of the watch.

Cost of the watch :

$\sf \dashrightarrow Total \: Amount - Amount \: paid \: in \: cash$

$\sf \dashrightarrow 2960 - 2600$

$\sf \dashrightarrow Rs.2360$

Hence, the cost of the watch given by Ken to Sam is ₹2360.