Question

A farmer borrows Rs.5,400 from the finance company to buy a buffalo. The rate of simple interest is 13% per annum and he borrows the money over a 5-year period. Find the amount that the farmer must repay the company.

Answer 1

$P=5400$

$R=13\%$

$T=5yr$

$SI=\frac{PRT}{100}$

$=\frac{5400\times 13\times 5}{100}$

$SI=3510$

Total Amount $=P+SI$

$=5400+3510$

$=8910$Rs.