Question

Rahul borrowed a sum of money from a money lender for which he had to pay interest at the rate of 15% p.a. He paid ₹10,400 at the end of two years to clear the loan along with interest. Find the sum he borrowed.​

Answer 1

Answer:

Given

Time = 2 years

Rate = 15%

Amount = ₹10,400

Let,

the Principal = x

then,

Interest =

$\frac{x \times 2 \times 15}{100} = \frac{3x}{10}$

Now,

$\frac{3x}{10} + x = 10400 \\ \frac{13x}{10} = 10400 \\ x = \frac{10400 \times 10}{13} \\ x = 8000$

HENCE, principal = ₹8000

THANKS