Question

rohan took a loan of 40000Rs at p.c.p.a to buy a two wheeler.
What amount will he returns to the bank at the end of 2 years?

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Answer 1

Answer:

Answer: Given Principal amount P = Rs 8000

Time period T = 2 years

Rate of interest R = 18% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (8000 × 2 × 18)/100

= Rs 2880

Total amount payable by rohan after 2 years = Rs 8,000 + Rs 2,880

= Rs 10,880

Amount paid = Rs 10,400

Value of the watch = Rs 10,880 − Rs 10,400 = Rs 480