uday takes a loan for 5 years at a rate of 7.5%.he calculates that by the end of the loan period.he will have repaid rupees 1,10,00 in total.how much does he borrow
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Answer:
Rs.8000
Step-by-step explanation:
We are assuming that this is a case of simple interest
P = amount borrowed in Rs. = ?
R = rate of interest per cent per year = 7.5
T = time period in years = 5
A = amount to be repaid at the end of period T, in Rs. = 11000
SI = Simple Interest = (P*R*T)/100
A = P + SI
= P + (PRT)/100
A = P(1 + RT/100)
11000 = P(1 + (7.5*5)/100)
11000 = P(1 + 0.375)
P = 11000/1.375
P = 8000
The amount borrowed by Uday is Rs.8000
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