manisha took a loan rs 16,000from kamini who charged rate of interest at 18% per annum . after 2 year maisha paid her rs 20,800 and a wris watch to clear the account . what is the value of wrist watch

rs 960

Dear Student!

Given P = Rs16000, r = 18 % p.a. and n = 2 years

Let the value of the wrist watch be Rs.x.

Amount paid by Manisha, A = Rs 20800 + Rs x = Rs (20800 + x)

Simple interest on Rs16000 at 18 % p.a. for 2 years,

∴ S.I.= Rs 5760

We know that,

Amount(A) – Principle (P) = Simple Interest(S.I.)

∴ Rs(20800 + x) – Rs16000 = Rs 5760

⇒ 4800 + x = 5760

⇒ x = 5760 – 4800

⇒ x = 960.

Thus, the value of the wrist watch is Rs 960.

Cheers!