Question

A bank is providing a loan to farmers at a 7% rate of simple interest per
annum. If a farmer borrows a loan for 5 years and returns ₹ 1,51,200 at the end
of 5 years, find the initial amount.

Answer 1

Answer:

1,61,784 is the correct answer

I hope it will help you and pls mark as a brainaliest

Answer 2

Answer:

The initial amount which farmer borrowed is 1,12,000 Rs

Step-by-step explanation:

 Given rate of loan  (R) = 7%

     time to return loan (T)= 5 years

 the total amount returned by farmer after 5 years  = 1,51,200

        total amount = initial amount (principal amount ) + simple interest

     total amount = P + $\frac{PTR}{100}$    [ P = principal amount, T = time, R= rate ]

             151200 =   $P[1 + \frac{TR}{100}]$

             151200 = $P [ 1+\frac{( 5)(7)}{100} ]$    

                151200 = $P[ \frac{ 100 + 35}{100} ]$

                  151200 = $P [ \frac{135}{100} ]$

                 P = $\frac{151200(100) }{135}$  

                  P =1,12,000