Question

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

Answer 1

Given:

• Sum, P = $ 2000
• Time, t = 6 years
• Rate of interest, r = 8% p.a.
• Amout given = $ 2600

To find: The cost of the watch = ?

Solution:

Using the formula I = Ptr/100, where I is interest:

I = $ 2000 * 6 * 8 / 100

= $ 960

Now, sum + interest = $ (2000 + 960) = $ 2960

Therefore the cost of the watch is

= sum + interest for 6 years - amount given

= $ (2960 - 2600)

= $ 360