Question

Romesh borrowed Rs 2000 at 2% per annum and Rs 1000 at 5% per annum. He cleared his debt after 2 years by giving Rs 2800 and a watch. What is the cost of the watch?

Answer 1

Given Principal amount P = Rs 2000
Time period T = 2 years
Rate of interest R = 2% p.a.
We know that simple interest $=\frac{P\times T\times R}{100}$
On substituting these values in above equation we get
$SI=\frac{2000\times 2\times 2}{100}$
= Rs 80
Principal amount P = Rs 1000
Time period T = 2 years
Rate of interest R = 5% p.a.
We know that simple interest $=\frac{P\times T\times R}{100}$
On substituting these values in above equation we get
$SI=\frac{1000\times 2\times 5}{100}$
= Rs 100
Total amount that he will have to return
= Rs. 2000 + 1000 + 80 + 100 = Rs. 3180
Amount repaid = Rs. 2800
Value of the watch = Rs. 3180 – 2800 = Rs. 380