Question

if a person repaid rs.22500 after 10 years of borrowing a loan, at 10% per annum simple interest find out what amount did he take as a loan?

Answer 1

Solution:-

At 10 % simple interest per year, the borrowed amount would get doubled in 10 years. So, the original amount borrowed is
22500/2 
= Rs.11250

The original amount of loan taken is Rs. 11250
Answer.

Answer 2

After ten years at the rate of 10% interest amount will be 100% e.g. amount borrowed will become doubled. So 22500 is the double of 11250 which was actual amount.