Question

Hari borrowed Rs. 126000 from a money-lender at 15% per annum simple interest,

After 3 years, he paid Rs. 70700 and gave a buffalo to clear off the debt. What is the
cost of the buffalo?​

Answer 1

Solution,

principal(P)= Rs. 126000

Rate(R)=15%

Time(T)=3 years

Money paid=Rs.70700

Cost of buffalo=?

We know that,

Interest=P*T*R

100

= Rs. 126000*3*15

100

= Rs. 56700

Now,

Amount(A)=P+I

=Rs. ( 56700+126000)

= Rs.182700

Again,

by the question,

Cost of buffalo= Amount- Money paid

= Rs.(182700- 70700)

= Rs. 112000

Therefore, the cost of buffalo is Rs. 112000.

Answer 2

Rs. 112000

Explanation:

• Borrowed money = Rs. 126000
• Interest rate = 15% PA simple
• Time = 3 years

Hari is due to pay after 3 years:

• 126000* (1+ 3*15/100) = 182700

He pays Rs. 70700, remaining money is cleared by giving buffalo.

Cost of buffalo:

• 182700 - 70700= Rs. 112000

Answer is: Rs. 112000