Question

Sanju borrowed a sum of money from simran at 8% of interest. After 4 years sanju had to give simran 9900 rupees to clear the debt. What was the amount sanju borrowed originally?

Answer 1

Assuming that the interest of 8% is to be considered as simple interest, Sanju paid 8% x 4 years = 32% interest on the principal amount.

So, if the principal amount was Rs 100, Sanju would have paid Rs 132
Using the above information, we can calculate the principal amount Sanju would have borrowed as:
(9900 x 100) ÷ 132
= Rs 7500