Question

A man borrowed Rs 8000 from a bank at 8% per annum. Find the amount he has to pay after 4 ½ years.

Answer 1

Given Principal amount P = Rs 8000

Time period T = 4 ½ years = 9/2 years

Rate of interest R = 8% p.a.

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

On substituting these values in above equation we get

SI = (8000 × (9/2) × 8)/100

= Rs 2880

Amount = Principal amount + Interest

= Rs 8000 + 2880

= Rs 10880