Question

Sham paid Rs. 9,600 as interest on a loan he took 5 years ago @ 6% simple interest. What was the amount he took as loan?

i. 16,400 ii. 12,000

iii. 12,500 iv. 18,000

Answer 1

Given :

Simple interest :- ₹9600

Rate of interest :- 6%

Time :- 5 years

To find :

The principle amount took as loan.

Solution :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow 9600 = \dfrac{P \times 6 \times 5}{100}$

$\sf \dashrightarrow 9600 = \dfrac{P \times 30}{100}$

$\sf \dashrightarrow pP= \dfrac{9600 \times 100}{30}$

$\sf \dashrightarrow P = \dfrac{3200 \times 100}{10}$

$\sf \dashrightarrow P = \dfrac{320000}{10}$

$\sf \dashrightarrow P = \cancel \dfrac{320000}{10} = 32000$

Hence, the principle amount is ₹32000.

Verification :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow 9600 = \dfrac{32000 \times 6 \times 5}{100}$

$\sf \dashrightarrow 9600 = \dfrac{32000 \times 30}{100}$

$\sf \dashrightarrow 9600 = \dfrac{960000}{100}$

$\sf \dashrightarrow 9600 = 9600$

$\sf \dashrightarrow LHS = RHS$