Question

X borrowed rs.5000 on 7th of june 2006 and returned it on 19th august 2006. find the amount he paid. if the interest is calculated at 7%per annum

Answer 1

at first 7%per annum ... means 1 year =7%
then 12month=7%. 1montg=7/12%..........
4week =7/12%.... 2week =7/24. then totall interest is 72.916 in 5000 into 2 months and2week then ans is5072.916

Answer 2

Concept:

Simple Interest-

• Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

• Simple interest typically favours consumers who pay their bills or loans on time or early each month because it is frequently calculated on a daily basis.
• Simple Interest can be calculated as follows-

                    Interest = P x R x T / 100

where,

P= principal

R= rate

T = time

Given:

• P= 5000
• R= 7%
• T= 73 days

Find:

The amount he paid back.

Solution:

(A) Simple Interest = P x R x T / 100

     Simple Interest = 5000 x 7 x 73 / 100 x 365

     Simple Interest = 70

(B)  Amount to be paid back = P + simple interest

     Amount to be paid back = 5000+70

     Amount to be paid back = 5070

(C)  No. of days money held = 24 days (june) + 31 days (july) + 18 days (august) = 73  days.

Hence, we can say that ,X has to return Rs. 5070.

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