Question

Rs. $7000$ is borrowed at $3.5\%$ rate of interest p.a. borrowed for $2$ years. Find the amount to be paid at the end of the second year.

Answer 1

For solving this particular question, we just have to apply interest $= \dfrac{{p \times r \times t}}{{100}}$ ,
Where ‘p’ is the principal amount ,
‘r’ is the rate ,
And ‘t’ is the time.
We have to substitute the given data in the interest formula.

Complete step by step solution:
It is given that , the principal amount, ‘p’ is Rs $7000$ ,
The rate, ‘r’ is $3.5\%$ ,
And time ‘t’ is $2$ years.
We have to find the interest ,
We know that interest $= \dfrac{{p \times r \times t}}{{100}}$ ,
Where ‘p’ is the principal amount ,
‘r’ is the rate ,
And ‘t’ is the time.
Now, substitute the given data , we will get the following ,
Interest $= \dfrac{{p \times r \times t}}{{100}}$
$= \dfrac{{7000 \times 3.5 \times 2}}{{100}} \\\ = 490 \\\$
Therefore, total amount is equal to the sum of interest and principal amount,
Total amount $=$ interest $+$ principal amount
$= Rs7000 + Rs490 \\\ = Rs7490 \\\$
Note: In the given question, no mathematical formula except the relation interest is equals to $\dfrac{{p \times r \times t}}{{100}}$
Where ,
‘p’ is the principal amount ,
‘r’ is the rate ,
And ‘t’ is the time.
is being used only the mathematical operations such as addition, subtraction, multiplication and division is used. Questions similar in nature as that of above can be approached in a similar manner and we can solve it easily. The important thing to recollect about any equation is that the ‘equals’ sign represents a balance. What the sign says is that what’s on the left-hand side is strictly an equal to what’s on the right-hand side. It is the type of question where only mathematical operations such as addition, subtraction, multiplication and division is used.