A borrowed rs 2500 fromB at 12%per annum compound interest .after 2 years A gave rs 2936 and a watch to B to clear the account .find the cost of the watch

 

Asked by anju.ch077 | 16th Apr, 2019, 10:00: AM

Expert Answer:

A space b o r r o w e d space R s. space 2500 space a t space 12 percent sign space i n t e r e s t
P r i n c i p a l space P equals R s. space 2500 comma space R a t e space o f space i n t e r e s t space equals space 12 percent sign space a n d space T i m e space equals space 1 space y e a r
I n t e r e s t space p a i d space f o r space f i r s t space y e a r space equals space fraction numerator 2500 cross times 12 cross times 1 over denominator 100 end fraction equals 300
A m o u n t space a f t e r space 1 s t space y e a r space equals space 2500 plus 300 equals 2800
P r i n c i p a l space f o r space t h e space s e c o n d space y e a r space equals space 2800
R a t e space o f space i n t e r e s t space equals space 12 percent sign space a n d space T i m e space equals 1 space y e a r
I n t e r e s t space p a i d space f o r space t h e space s e c o n d space y e a r space equals space fraction numerator 2800 cross times 12 cross times 1 over denominator 100 end fraction equals 336
A m o u n t space a f t e r space 2 n d space y e a r space equals space 2800 plus 336 equals R s. space 3136
A m o u n t space g a v e space i n space c a s h space i s space R s. space 2936
S o comma space t h e space cos t space o f space w a t c h space equals 3136 equals 2936 equals R s. space 200

Answered by Renu Varma | 16th Apr, 2019, 10:26: AM

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