Question

Vipul borrowed $10,000 from Rajesh @9% annually. He closed his loan by giving $1500 cash and a cow after 3 years. Find the cost of the cow.​

Answer 1

Solution

$interest \: of \: 100 \: for \: 1year \: = 9$

$interest \: of \: 1 \: for \: 1 \: year \: = \frac{9}{100}$

$interest \: of \: 10000 \: for \: 1 \: year \: = \\ \: \frac{9}{100} \times 1000 \times 3$

$= 2700$

So, the total money given to Rajesh= 10,000 + 2700 = 12,700.

Money that vipul gave to Rajesh

= 1500 + 1cow

Cost of cow = 12,700 - 1500

= 11, 200.