Question

A person lent some amount at $11\%$ p.a. simple interest, and after $4$ years he interest amounted to Rs. $1200$ less than the amount lent. What is the amount that person lent?

• A. $1717.17$
• B. $2142.85$
• C. $3237.47$
• D. $4347.16$

Answer 1

The correct option is B $2142.85$

Simple interest, $I=$ $\frac{PRT}{100}$
$\Rightarrow I=\frac{P\times 11\times 4}{100}=\frac{11P}{25}$
Then $P-\frac{11P}{25}=1200$
$\Rightarrow 25P-11P=1200\times 25$
$\Rightarrow 14P=30000$
$\Rightarrow P=2142.85$

Therefore, the amount that person lent is Rs. $2142.85$.