Question

A farmer borrowed Rs $5300$ at $8$% interest per annum. At the end of $2\frac{1}{2}$ he cleared his account by paying rs $4600$ and a watch. Find the cost of watch.

Answer 1

Given principle$\left(P\right)=$Rs. $5300$

Interest rate$\left(r\right)=8\%$

Time$=2\frac{1}{2}=\frac{5}{2}$

Total amount$=P(1+\frac{nr}{100})=5300(1+\frac{\frac{5}{2}\times 8}{100})$$=5300\left(1.2\right)$$=$Rs. $6360$

Total amount$=$ Paid amount$+$Watch price

$6360=4600+$watch

$\Rightarrow$ Watch$=$Rs. $1760$.