Question

A farmer took a loan at 12% p.a. at Simple Interest. After 4 years he settled the loan by paying Rs. 2442. What was the principle amount?

• A. Rs. 1542
• B. Rs. 1600
• C. Rs. 1650
• D. Rs. 1550

Answer 1

Answer: (C)

Rs. 1650

Amount = Rs 2442

Interest = 12 % p.a.

time = 4 years

Let principle be $x$

simple interest $=\frac{x\times 12\times 4}{100}=\frac{48x}{100}$

Amount $=x+\frac{48x}{100}=\frac{100x+48x}{100}=\frac{148x}{100}=\frac{37x}{25}$

$2442=\frac{37x}{25}$

$x=\frac{2442\times 25}{37}=1650Rs$