Given Principal amount P = Rs 2000
Time ** T = 2 years
Rate of interest R = 2% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (2000 × 2 × 2)/100
= Rs 80
Principal amount P = Rs 1000
Time ** T = 2 years
Rate of interest R = 5% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (1000 × 2 × 5)/100
= Rs 100
Total amount that he will have to return = Rs. 2000 + 1000 + 80 + 100 = Rs. 3180
Amount repaid = Rs. 2800
Value of the watch = Rs. 3180 – 2800 = Rs. 380
