Question

Gracy took a loan of Rs 4000 to buy a net. She paid back Rs 345 every month for one year. How much did she pay back to the bank?

Answer 1

Hint: The amount paid back by Gracy every month is given. She paid back every month for one year. We will use this information to calculate the amount paid back by her in one year. Since there is no other information regarding her paying back the money, the amount she paid back in one year is the total amount she paid back to the bank.

Complete step by step answer:
We know that Gracy borrowed Rs 4000 from the bank. We have the information that she paid back Rs 345 every month for one year. Now, in one year, there are twelve months. So, the amount of money paid back by Gracy in one year will be calculated in the following manner,
$\text{Amount paid back in one year = amount paid every month }\times \text{ number of months in a year}$
The amount paid every month by Gracy is Rs 345. There are 12 months in a year. Substituting these values in the formula above, we get
$\begin{align}
  & \text{Amount paid back in one year = 345}\times \text{12} \\
 & \text{= 4140 Rs}
\end{align}$
As there is no other information regarding the repayment of the money borrowed by Gracy, the amount paid back in one year is the total amount she paid back to another bank.
Hence, Gracy paid back Rs 4140 to the bank as a repayment of her loan.

Note:
 The amount Gracy borrowed was Rs 4000 but she paid back Rs 4140. The Rs 140 which appear to be extra could be the total interest on her borrowed sum. As the question does not ask us anything about the interest on the sum of money, we should not make any extra or unnecessary calculations that would lead to confusion.