Question

To purchase a cow, a farmer borrowed some money from a bank. He clear his
debt by paying Rs 4720 at the end of one and a half year. If the bank charges
interest at the rate of 12% per annum, find the cost of the cow

Answer 1

Dear Friend !

A = Rs 4720

R = 12% p. a

T = 1 ½ years = 3/2 years

Recall the formula, A = P[1 + (TR/100)]

= 4720[ 1 + (3 × 12)/200]

= 6419.20

Hence the cost of the cow is Rs 6419.20