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 principal amount borrowed by him was:Choices:- Rs.2000 Rs.10000 Rs.15000 Rs.20000
Question
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 principal amount borrowed by him was:Choices:- Rs.2000 Rs.10000 Rs.15000 Rs.20000
Solution
The formula for simple interest is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time.
In this case, we know that the interest (I) is Rs. 5400, the rate of interest (R) is 12% or 0.12, and the time (T) is 3 years. We need to find the principal amount (P).
Rearranging the formula to solve for P, we get P = I / (RT).
Substituting the given values, we get P = 5400 / (0.12 * 3) = Rs. 15000.
So, the principal amount borrowed by him was Rs. 15000.
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