Question

A man takes a loan from a bank at the rate of 12% per annum simple interest. After three years, he pays the interest of ₹5,400. Find the principal amount borrowed by him.

• A. Rs. 12,000
• B. Rs. 14,000
• C. Rs. 15,000
• D. Rs. 16,000

Answer 1

The correct option is C Rs. 15,000

Given:
Simple Interest (SI) = ₹5,400
Time period (T) = 3 years
Rate (R) = 12% per annum
Let the principal be P.

By formula,
Principal (P) $=\frac{SI\times 100}{R\times T}$
$=\frac{5,400\times 100}{12\times 3}$
$=Rs.15,000$