Question

A man borrowed Rs 8000 from a bank at 8% per annum. Find the amount he has to pay after $4\frac{1}{2}$ years.

Answer 1

Given Principal amount P = Rs 8000

Time period T $=4\frac{1}{2}$ years $=\frac{9}{2}$ years

Rate of interest R = 8% p.a.

We know that simple interest $=\frac{P\times T\times R}{100}$

On substituting these values in above equation we get

$SI=\frac{8000\times \left(\frac{9}{2}\right)\times 8}{100}$

= Rs 2880

Amount = Principal amount + Interest

= Rs 8000 + 2880

= Rs 10880