Question

ravi borrowed Rs 5000 from kumar at 9% p.a. simple interest. After 4years ravi cleared the account giving Rs5500 and a cycle to kumar. find the cost of the cycle

Answer 1

Amount to be paid after 4 years
= PRT/100 + P
= (5000 x 9 x 4 x 1/100) + 5000
= 6800
He paid ₹5500 and a cycle
Cost of cycle = 6800 - 5500
= ₹1300
Cost of the cycle is ₹1300.