Question

Ramchand took a loan of Rs. 12000 from his neighbour and agreed to repay it after 2 years at the rate 8 % per annum, simple interest. At the end of 2 year, his neighbour demanded interest at the rate of 12 % . The extra amount paid by the borrower is ?
a) Rs. 860
b) Rs. 960
c) Rs. 806
d) Rs. 906

Answer 1

Given :-  

• Ramchand took a loan of Rs. 12000 from his neighbour and agreed to repay it after 2 years at the rate 8 % per annum, simple interest.

• At the end of 2 year, his neighbour demanded interest at the rate of 12 % .  

To Find :-  

• The extra amount paid by the borrower is ?  

Solution :-  

~Here, we’re given the principal , time and rate of interest for which ramchand took the loan from his neighbour at simple interest. After, 2 year his neighbour demanded interest at the rate of 12 %. Firstly we’ll find the simple interest ( SI ) for the first case and then for the second case and then subtract the amount of first case from the second one in order to find the extra amount piad by ramchand

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As we know that ,  

$\boxed{\sf{ \maltese \;\; SI = \dfrac{ P \times R \times T }{100} }}$

Where,  

• P is the principal amount ( Rs. 12000 )  

• R is the rate of interest ( 8 % for first case and 12 % for second case )  

• T is the time ( 2 years )  

• SI is the simple interest  

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Finding the simple interest :-  

$\sf \implies \dfrac{P \times R \times T}{100}$

$\sf \implies \dfrac{ 12000 \times 8 \times 2}{100}$

$\sf \implies 120 \times 8 \times 2$ 

$\boxed{\bf{ \;\; Rs.\;1920}}$ 

$\huge{\mathfrak{\underline{\underline{ {\dag} \; \; Case\;2 :}}}}$

Finding the simple interest :-  

$\sf \implies \dfrac{ P \times R \times T }{100}$ 

$\sf \implies \dfrac{ 12000 \times 12 \times 2}{100}$

$\sf \implies 120 \times 12 \times 2$ 

$\boxed{\bf{ \;\; Rs. 2880 }}$

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Finding the extra amount to be paid :-  

$\sf \implies Case\;2 - Case\;1$

$\sf \implies Rs.\;2880 -Rs. 1920$  

$\boxed{\bf{ \bigstar \;\; Rs. \; 960 }}$

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Hence,  

•  The extra amount to be paid by ramchand is Rs. 960 [ Option ‘d’ ]  

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Answer 2

Gɪᴠᴇɴ :-

Ramchand took a loan from his neighbour of = Rs.12000

Rate was Decided = 8% per annum , simple interest.

At the end of 2 years, his neighbour demanded an interest at the rate of 12%.

Tᴏ Fɪɴᴅ :-

what is the extra amount paid by the Borrower ?

Fᴏʀᴍᴜʟᴀ ᴜsᴇᴅ :-

when Rate is Simple Interest , Interest Received is :- (Principal * Rate * Time) / 100

Sᴏʟᴜᴛɪᴏɴ :-

Case 1 :- when Rate was 8% Per Annum.

→ P = Rs.12000

→ T = 2 Years.

→ R = 8%

→ SI To be Paid By Ramchand to His Neighbour = (12000*2*8)/100 = Rs.1920

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Case 2 :- Now, it Has been said That, At the end of 2 Years , The Neighbour Refuse to take interest on the rate of 8% and demands that, he will take interest at the rate of 12% per Annum.

So,

→ P = Rs.12000

→ T = 2 Years.

→ R = 12%

→ SI To be Paid By Ramchand to His Neighbour Now = (12000*2*12)/100 = Rs.2880.

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Therefore,

→ Extra Amount Paid By The Borrower = 2880 - 1920 = Rs.960 (Ans.)

Hence, Now, Ramchand Paid Rs.960 More to The Neighbour.

(This is Correct Answer).

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Lets See Tricky Method Now :-

As it is given That, Rate was increased From 8% to 12% .

So, we can conclude That, Now, Ramchand has to pay 4% more interest on Same Amount .

Therefore,

→ Extra Amount Paid By The Borrower = (12000 * 4 * 2) / 100 = Rs.960 (Ans.)

Hence, Now, Ramchand Paid Rs.960 More to The Neighbour.

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