Page 122 - New Medley 5 Semester 2

`8000 × 7 × 2
So, S.I. = = `1120
100

And, A = P + S.I. = `8000 + `1120 = `9120

1
Example 2: A farmer borrowed `10000 from a bank for 2 years
2
1
at the rate of 7 % per annum. What amount will he
2
1
pay to the bank after 2 years?
2

1 5
Solution: Given, Principal = `10000, Time = 2 years = years
2 2

1 15
and Rate = 7 % p.a. = % p.a.
2 2

P× R× T
We know, S.I. =
100

15 5
10000 × × 10000 ×15×5
2 2
S.I. = =
100 100× 2× 2

= `1875

\ A = P + S.I.

= `10000 + `1875 = `11875

Thus, the farmer will pay `11875 in all after completing

the period of loan.

EXERCISE 4.1

A. Compute the simple interest and the amount for each of the following.
1. P = `700, R = 6%, T = 5 years

2. P = `2000, R = 8%, T = 5 years

1
3. P = `2500, R = 12 %, T = 4 years
2

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