Question

ken borrowed $2000 from sam at 8%per annum.after 6 years he cleared the amount by giving $2600 cash and a watch. find the cost of the watch

Answer 1

Let us find the interest for 6 years ,

p = $2000 , t = 6 , rate = 8%

( p× t × r)/ 100

= (2000× 6 × 8) /100

= 960

the interest is = $ 960

the total amount to be cleared after 6 years = p.a + interest

= 2000+ 960

= $2960

ken cleared by giving $2600 and a watch

cost of watch = $ 2960- 2600

= $ 360

Explanation:

Answer 2

So first you have to find the annual interest
So you take 2000 and multiply it by .08%
Which equals 160
So every year the interest is 160
Now take 160 and multiply it by 6 for number of years
Then you get 960 so that's how much interest was gathered over 6 years
So now add 960 to 2000
Which equals 2960
Subtract 2600 to find the differnce
Now only thing is left is 360
So the watch was worth $360