Question

A certain amount is borrowed from a bank for a year at a rate of 10% per annum and a interest of ₹500 is paid , then the borrowed amount is ₹

• A. 4500
• B. 3900
• C. 5000

Answer 1

The correct option is C 5000

Given the amount paid as interest is ₹500
And, interest rate is 10%
Let the amount borrowed be x
So,
$\frac{500}{x}=\frac{10}{100}$
$\frac{500}{x}=\frac{1}{10}$
$x=₹5000$
So, the borrowed amount borrowed is ₹5000