A borrows $800 at the rate of 12% per annum simple interest and B borrows $910 at the rate of 10% per annum simple interest. In how many years will their debts be equal?
Thus, if A borrows Rs 800 at the rate of 12% per annum simple interest and B borrows Rs 910 at the rate of 10% per annum, simple interest, their debts will be equal after 22 years.
Answers & Comments
Answer:
22 years
Step-by-step explanation:
Let the number of years after which their debt will be equal = t years
We know that Simple Interest is given as,
SI = ( P × R × T ) / 100
Amount after 't' years = Principal + Interest in 't' years
Amount paid by A = 800 + (800× 12 × t) /100
Amount paid by B = 910 + (910 × 10 × t) /100
According to the question,
Amount paid by A = Amount paid by B
Therefore,
800 + (800× 12 × t) /100 = 910 + (910 × 10 × t) /100
800 + 96t = 910 + 91t
5t = 110
t = 22
Hence, after 22 years the amount will be equal.
Thus, if A borrows Rs 800 at the rate of 12% per annum simple interest and B borrows Rs 910 at the rate of 10% per annum, simple interest, their debts will be equal after 22 years.