Question

Ramesh borrowed some money for 5 years at simple interest. The rate of interest is 8 p.c.p.a. If he returned 16400 rupees altogether at the end of 5 years, how much had he borrowed?​

Answer 1

He borrowed about  11,714.29 if at the rate of interest  8 p.c.p.a he returned 16400 rupees altogether at the end of 5 years,

Given:

• Ramesh borrowed some money for 5 years at simple interest
• The rate of interest is 8 p.c.p.a
• He returned 16400 rupees altogether at the end of 5 years,

To Find:

• Amount Borrowed

Solution:

• SI = P x R x T/100
• A = P + SI = P + P x R x T/100
• P = Principal = Amount Borrowed
• A = Amount Returned = 16400
• R = Rate of Interest in %  per annum = 8
• T = Time in Years= 5

Step 1:

Use A =  P + P x R x T/100 and substitute the values

16400 = P  + P x 8 x 5/100

16400 = P + 0.4P

16400 = 1.4P

Step 2:

Divide both sides by 1.4

16400/1.4 = P

=> P ≈ 11,714.29

He borrowed about  11,714.29