Multiple choice

Sachin borrowed Rs. 1500 from Harbhajan Singh at 14% per annum simple interest. After 5 years, he gave Rs. 2100 and a watch to Harbhajan Singh to clear the account. Find the cost of the watch.

  1. Rs. 450

  2. Rs. 650

  3. Rs. 700

  4. Rs. 900
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A Correct answer
Explanation

Simple interest = (P * R * T) / 100 = (1500 * 14 * 5) / 100 = 1050. Total amount to be paid = 1500 + 1050 = 2550. Sachin paid 2100 plus a watch. So, the watch cost 2550 - 2100 = 450.

AI explanation

Using the simple interest formula, the interest accrued is (1500 * 14 * 5) / 100 = Rs. 1050. The total amount due after 5 years is the sum of the principal and the interest, which equals 1500 + 1050 = Rs. 2550. Since Sachan paid Rs. 2100 in cash, the cost of the watch is the remaining balance of 2550 - 2100 = Rs. 450.

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