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

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

KnowledgeBoat · Accepted Answer

For first year : P = ₹ 2500 T = 1 year R = 12% I = = ₹ 300 Amount = P + I = ₹ 2500 + ₹ 300 = ₹ 2800. For second year : P = ₹ 2800 T = 1 year R = 12% I = = ₹ 336 Amount = P + I = ₹ 2800 + ₹ 336 = ₹ 3136. Given, After 2 years, A gave ₹ 2936 and a watch to B to clear the account. Let cost of watch be ₹ x. ∴ 3136 = 2936 + x ⇒ x = 3136 - 2936 = ₹ 200. Hence, cost of watch = ₹ 200.

Mathematics

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

Compound Interest

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