Question

A man lent out money at 4% interest for 2 years. What sum he lent if interest he got was rupees 500?

Answer 1

Answer: The sum of money that the man lent would be Rs 6250.

Step-by-step explanation:

Given that,

Interest rate, R= 4%

Time, T= 2 yrs

Interest, I= Rs 500

Using the formula of simple interest, i.e.

I= P*R*T/100 ( where I= interest, P= sum, R= interest rate, and T= time)

Plugging all the given values in the above equation, we get:

500= P*4*2/100

Rearranging the above expression as follow:

P= 500*100/8

P=6250