Question

Mr. Sharma borrowed some money from a friend at the interest rate of 8% per annum. He repaid his debt by paying rs 16,800 at the end of 5 years. How much did he borrow?

Answer 1

Abbreviations used throughout the answer:
1. Amount = A
2. Simple Interest = SI
3. Rate of interest = R
4. Time = T
5. Principal = P

Answer:

Unless mentioned the principal is said to be calculated at simple interest.

Let the principal be ₹ P.

Given,
R = 8 % p.a.
T = 5 years

We know,
Simple Interest = (PRT) / 100
SI = (P * 8 * 5) / 100
SI = 40P / 100
SI = 4P / 10

Amount = P + SI
A = P + 4P/10
A = 14P/100

But according to question,

A = ₹ 16800
14P/100 = 16800
P = 1680000/14
P = ₹ 120000

Hence,
The principal or the sum borrowed was ₹ 1,20,000

Answer 2

Answer:

$ 12000

Step-by-step explanation:

Given,

R =8 % per annum

A = $16800

T = 5 years

S.I = p*R*T /100

= x *8*5/100 = 2x/5

amount =P + si

16800= x + 2x/5

16800 = 7x/5

x = $( 5*16800/100) = 5*2400

then, x = $ 1200.

thank you for this question