A farmer borrowed ₹3600 at 15% per annum at simple interest. At the end of 4 years he cleared his debt by paying ₹4000 per annum and a Cow. The cost of the Cow is:
Answer & explanation
Correct answer: option 4
Principal, P = 3600
Rate, R = 15% per annum
Time, T = 4 years
Simple Interest = P*R*T/100 = 3600*15*4/100
= 2160
Total Amount paid = 3600+2160 = 5760
Rather he paid 4000+ A cow = 5760
Cost of Cow = 1760
The correct answer is Option (4) → ₹1760