# 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-

- Rs. 12000
- Rs. 15000
- Rs. 15400
- Rs. 64800

**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