Multiple choice

A farmer borrowed Rs. 3600 at 15% simple interest per annum. At the end of 4 years, he cleared this account by paying Rs. 4000 and a cow. The cost of the cow is

  1. 1000

  2. 1200

  3. 1550

  4. 1760
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D Correct answer
Explanation

Simple interest = (3600 * 15 * 4) / 100 = 2160. Total amount due = 3600 + 2160 = 5760. The farmer paid 4000 plus a cow, so the cow cost 5760 - 4000 = 1760.

AI explanation

The total amount due at the end of 4 years is calculated using the simple interest formula, where the interest is 3600 multiplied by 15 multiplied by 4 and divided by 100, resulting in Rs. 2160. Adding this interest to the principal of Rs. 3600 gives a total due amount of Rs. 5760. Since the farmer cleared this account by paying Rs. 4000 and a cow, the cost of the cow is 5760 minus 4000, which is Rs. 1760.

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