Question

gopal borrowed some money at 12%simple interest if he had to pay back 1280 rupees after 5 years in order to clear off the loan how much did he borrowed??

Answer 1

The amount of money Gopal borrowed is Rs. 800

Explanation

Suppose, the amount of loan that Gopal borrowed is $x$ rupees.

Simple Interest formula is:  $I= P*r*t$ , where I = amount of interest, P = Principal amount, r = rate of interest in decimal form and t = time in years.

Here  $P=x$ , $r= 12\%= 0.12$ and $t=5$ years.

So using the above formula......

Amount of interest, $I= x*0.12*5 =0.6x$ rupees

As he had to pay back 1280 rupees after 5 years, it means (Amount borrowed + Amount of interest)= Rs. 1280  

So, the equation will be.......

$x+0.6x=1280\\ \\ 1.6x=1280\\ \\ x=\frac{1280}{1.6}=800$

So, the amount of money Gopal borrowed is Rs. 800