Question

Pratibha borrows Rs. 47000 from a finance company to buy her first car. The rate of simple interest is 17% and she borrows the money over a 5 years period. Find how much amount Pratibha should repay the finance company at the end of five years.

Answer 1

Given,

Pratibha borrows $Rs47000$ form finance company to buy her first car

so the principal will be $=47000$

simple interest $=17$

time for which money is borrowed $=5$ years

Simple Interest$=\frac{principal\times time\times rate}{100}$

$=\frac{47000\times 5\times 17}{100}=39950$

The amount of money Pratibha will repay the finance company at the end of five years will be

$=(47000+39950)$

$=Rs.86950$