Mathematics for FinancePYQ Dec 22Question 1237 of 512
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A farmer borrowed 3,600\displaystyle 3,600 at the rate of 15%\displaystyle 15\% simple interest p.a. At the end of 4\displaystyle 4 years, he cleared this account by paying 4,000\displaystyle 4,000 and a cow. The cost of the cow is:

Options

A1,000\displaystyle 1,000
B1,200\displaystyle 1,200
C1,550\displaystyle 1,550
D1,760\displaystyle 1,760
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Correct Answer

✅ Option d — 1,760\displaystyle 1,760

All Options:

  • A1,000\displaystyle 1,000
  • B1,200\displaystyle 1,200
  • C1,550\displaystyle 1,550
  • D1,760\displaystyle 1,760

Detailed Solution & Explanation

**Derivation of Cow Value** Given: - Borrowed Principal (P\displaystyle P) = Rs. 3,600\displaystyle \text{Rs. }3,600 - Simple Interest Rate (r\displaystyle r) = 15%\displaystyle 15\% per annum - Time (t\displaystyle t) = 4\displaystyle 4 years - Amount repaid = Rs. 4,000\displaystyle \text{Rs. }4,000 + cost of a cow **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=P×r×t100SI = \frac{P \times r \times t}{100} SI=3600×15×4100=Rs. 2,160SI = \frac{3600 \times 15 \times 4}{100} = \text{Rs. }2,160 **Step 2: Calculate total amount due (A\displaystyle A)** A=P+SI=3600+2160=Rs. 5,760A = P + SI = 3600 + 2160 = \text{Rs. }5,760 **Step 3: Solve for the value of the cow** Total Repaid=4000+Cost of Cow=5760\text{Total Repaid} = 4000 + \text{Cost of Cow} = 5760 Cost of Cow=5760−4000=Rs. 1,760\text{Cost of Cow} = 5760 - 4000 = \text{Rs. }1,760 Hence, **Option D** is the correct answer.

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