Question

Ken borrowed $2000 from Sam at 8% per annum. After 6 year he cleared the amountby 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