Question

$\small\bold\green{question: }$

Anita borrowed Rs 400 from her friend at the rate of 12% per annum fot 12 1/2 years. Find the interest and amount paid by her.​

Answer 1

$\huge\underline{\underline{\texttt{{Question:}}}}$

• Anita borrowed Rs 400 from her friend at the rate of 12% per annum fot 12 1/2 years. Find the interest and amount paid by her.

$\huge\underline{\underline{\texttt{{Given:}}}}$

• $\small\bold{principal \: amount (P) = Rs \: 400}$
• $\small\bold{Rate(R) = 12\%}$
• $\small\bold{Time(T) = 2 \times \frac{1}{2}years = \frac{5}{2}years. }$

Now,

• Interest rate = 12% per annum

i.e. , Interest on Rs 100 for 1 year = Rs 12

$\small\bold{\therefore \: interest \: on \: Rs \: 100 \: for \: \frac{5}{2}years = Rs \: 12 \times \frac{5}{2} = Rs \: 30}$

$\small\bold{interest \: on \: Re \: 1 \: for \: \frac{5}{2} years \: = \: Rs \frac{30}{100}}$

Hence,

$\small\bold{interest \: on \: Rs \: 400 \: for \: \frac{5}{2} \: years \: = Rs \frac{30}{100} \times 400 = rs \: 120}$

Thus,

• Interest = Rs 120

$\small\bold\red{\therefore \: amount \: to \: be \: paid = principal + interest} \\ \small\bold\red{ = Rs \: 400 + \: Rs \: 120 = Rs \: 520}$

Hence,

interest and amount paid by Anita are Rs 120 and Rs 520 respectively.

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$\huge\bold\green{more \: to \: know: }$

$\small\bold\pink{principal: }$

• The money borrowed by a borrower from a lender is known as a principal or sum.

$\small\bold\pink{interest: }$

• The additional money paid by the borrower prime minister to the lender for having used his money is called the interest.

$\small\bold\pink{amount: }$

• The total money which the borrower pays back to the lender at the end of the specified period is called the amount.

It follows from the above definations that:

Amonut = principal + Interest

or, A = P + I , where 'A' stands for Amount, 'P' for principal and 'I' for Interest.

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