Question

Sanjeev borrows $Rs.25,000$ at an simple interest $8\%$ p.a. for $3$ years. At the end of $3$ years, he pays $Rs.19,000$ and a video camera. What is the value of the video camera?

Answer 1

The simple interest or $Rs.25,000$ at $8\%$ p.a. for $3$ years is $\frac{25,000\times 3\times 8}{100}=250\times 24=6,000$.

So at the end of $3$ years Sanjeev has to pay $25,000+6,000=31,000$.

According to the problem Sanjeev has paid $19.000$ with a video camera.

So the value of video camere $=31,000-19,000=12,000$.