Reema took a loan of Rs 8000 from a money lender, who charged interest

1.	Reema took a loan of Rs 8000 from a money lender, who charged interest at the rate of 18% per annum. After 2 years, Reema paid him Rs 10400 and wrist watch to clear the debt. What is the price of the watch?
Answer» Given Principal amount P = Rs 8000 Time period T = 2 years Rate of interest R = 18% p.a. We know that simple interest = (P × T × R)/100 On substituting these values in above equation we get SI = (8000 × 2 × 18)/100 = Rs 2880 Total amount payable by Reema after 2 years = Rs 8,000 + Rs 2,880 = Rs 10,880 Amount paid = Rs 10,400 Value of the watch = Rs 10,880 − Rs 10,400 = Rs 480

Reema took a loan of Rs 8000 from a money lender, who charged interest at the rate of 18% per annum. After 2 years, Reema paid him Rs 10400 and wrist watch to clear the debt. What is the price of the watch?

Answer»

Given Principal amount P = Rs 8000

Time period T = 2 years

Rate of interest R = 18% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (8000 × 2 × 18)/100

= Rs 2880

Total amount payable by Reema after 2 years = Rs 8,000 + Rs 2,880

= Rs 10,880

Amount paid = Rs 10,400

Value of the watch = Rs 10,880 − Rs 10,400 = Rs 480