Question

Rohit borrowed Rs. 24,000 at 7.5 percent per year. How much money will he pay at the end of the 4th years to clear his debt?

Answer 1

Principal (P) = Rs.24,000

Rate (R) = 7.5% P.A.

Time (T) = 4 years

S.I. =`("P"xx"T"xx"R")/100`

= Rs.`(24,000xx4xx7.5)/100`

= Rs. 240 × 4 × 7.5

= 240 × 30

= Rs. 7200

Amount needed to clear the debt at the end of 4th year

= Rs. 24000 + Rs. 7200 =  Rs. 3,1200