What is the Principle amount Borrowed by a Man

A man took loan from a bank at the rate of 12%  p.a simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principle amount borrowed by him was-

  1. Rs. 12000
  2. Rs. 15000
  3. Rs. 15400
  4. Rs. 64800
Monis Rasool Professor Asked on 24th May 2015 in Maths.
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1 Answer(s)

Answer: (b) Rs. 15000
Explanation:-

Given- Rate = 12% p.a., Time = 3 years, Simple Interest = Rs. 5400
Principal =?

Formula – Simple Interest = R x T x P/100
where, R = rate, T = Time, P = Principal

According to question,      5400 = 12 x 3 x P/100

P = 5400 x 100/36
P = Rs. 15000

Anurag Mishra Professor Answered on 24th May 2015.
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