Multiple choice

Vishal borrowed Rs.4,000 at 8% per annum at simple interest. At the end of 4th year he repaid it by returning Rs.5,000 cash and a wristwatch. Find the cost of the wristwatch?

  1. 120

  2. 320

  3. 360

  4. 280

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest = (4000 * 8 * 4) / 100 = 1280. Total amount due = 4000 + 1280 = 5280. He paid 5000 + watch. Watch = 5280 - 5000 = 280.

AI explanation

Using the simple interest formula, the total interest accrued is (4000 * 8 * 4) / 100 = Rs. 1280. The total amount to be repaid is the principal plus the interest, which is 4000 + 1280 = Rs. 5280. Since Vishal paid Rs. 5000 in cash, the cost of the wristwatch is 5280 - 5000 = Rs. 280.

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