Ken borrowed $2000 from sam at 8%per annum. after 6 years he cleared the amount by giving $2600 cash and a watch. find the cost of the watch

So first you have to find the annual interest

So you take 2000 and multiply it by. 08%

Which equals 160

So every year the interest is 160

Now take 160 and multiply it by 6 for number of years

Then you get 960 so that's how much interest was gathered over 6 years

So now add 960 to 2000

Which equals 2960

Subtract 2600 to find the differnce

Now only thing is left is 360

So the watch was worth $360