Question

Ramya narrowed a loan from a bank for buying a computer.After 4 years
she paid 26,640 and settled the accounts .If the rate of interest is 12% per annum ,what was the sum she borrowed

Answer 1

Assumed simple interest

Interest for 1 year = 12% (Given)

Interest for 4 years = 12 x 4 = 48%

Find the sum borrowed:

Sum borrowed = 100%

Sum paid = 100 + 48 = 148%

Sum paid = Rs 26,640 (Given)

148% = 26,640

1% = Rs 180

100% - 180 x 100 = Rs 18,000

Answer: She borrowed Rs 18000