Question

Surjeet borrowed ₹ 12,600 from a money-lender at 15 p.c.p.a. After 3 years, he paid ₹ 7070 and a cow to clear off the debt. What is the cost of the cow?

• A. 10,000 rupees
• B. 12,000 rupees
• C. 11,200 rupees
• D. 10,500 rupees

Answer 1

The correct option is C 11,200 rupees

Principle=12,600 , Rate of interest= 15 p.c.p.a
Interest $=\frac{P\times T\times R}{100}$
$=\frac{12,600\times 3\times 15}{100}$

$=₹5,670$
A=12,600 + 5,670 = ₹ 18,270
Surjeet had to pay ₹ 18,270 to the money-lender, but he paid 7070 rupees and a cow.
$\therefore$Cost of cow =$18270-7070=₹11,200$