# Salim borrowed Rs. 50000 at 12% p.a. interest and cleared the account by

Salim borrowed Rs. 50000 at 12% p.a. interest and cleared the account by paying Rs. 40000 and his motorcycle at the end of 3 years. Find the cost of the motor cycle.

(a) Rs. 30000

(b) Rs. 32000

(c) Rs. 35000

(D) Rs. 28000

**Answer: (D) Rs. 28000**

**Solution:-**

Salim borrowed Rs. 50000 at 12% p.a. interest for 3 years,

Then, Principal = 50, 000 , rate = 12% & Time = 3 years

Simple Interest = 50000 x 12 x 3/100

= 500 x 36

= 18000

Amount = 50000 + 18000

= 68000

He paying Rs. 40000 and motorcycle

Cost of Motorcycle + 40000 = 68000

Cost of motorcycle = 68000 – 40000

= Rs. 28, 000

Then, the cost of motorcycle is Rs. 28000.

Hence, the correct answer is option (D) Rs. 28000.