# What Is The Cost of The Cow?

A farmer borrowed ` 2400 at 12% interest per annum. At the end of 2.5 years, he cleared his account by paying ` 1200 and a cow. What is the cost of the cow?

- 3120
- 2350
- 1920
- 2120

**Answer: (3) 1920**

**Explanation:- **

**Given-**

Principal = Rs.2400, Time = 2.5 = 5/2 years & Rate = 12 %

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P – principal , R – rate, T – time**

Then, Simple Interest = 2400 x 12 x 5/2 x 100

= Rs.720

Amount = Principal + Simple Interest

Then,

Amount = 2400 + 720

= Rs.3120

1200 + cow = 3120 (Given in question)

Cow = 3120 – 1200

Cow = Rs.1920

Hence, the answer is (3) Rs.1920.