Question

Vilasrao borrowed Rs. 20000 from a bank at a rate of 8 p.c.p.a. What is the amount he will return to the bank at the end of the year?

Answer 1

Let interest on principal 20000 rupees be x rupees.
Interest on principal 100 rupees is 8 rupees.

`x/(20000) = 8/100`

`x/(20000) xx 20000 = 8/100 xx 20000`.....(Multiplying both sides by 20000)

x = 16000

Amount to be returned to the bank = principal + interest
= 20000 + 1600
= Rs. 21600