1.

A borrowed Rupees `2500` from B at `12%` per annum compound interest. After 2 years, A gave Rupees `2936` and a watch to B to clear the account. Find the cost of the watch.

Answer» `A` borrowed Rs `2500` from `B` at `12%` per annum compound interest.
So, final amount after `2` years `= 2500(1+12/100)^2`
`= 2500**112/100**112/100 = 3136`
Now, `A` gave `2936` Rs and a watch to clear the account.
Let cost of the watch is `x` Rs.
`:. x+2936 = 3136`
`=> x= 200`
`:.` Cost of the watch is `200` Rs.


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