Question

Amir paid ₹11,200 as interest on a sum he took 5 years ago from a bank at 16% per annum simple interest. Find the loan amount.

• A. ₹15,000
• B. ₹14,000
• C. ₹13,000
• D. ₹16,000

Answer 1

The correct option is B ₹14,000

Interest paid = ₹11,200
Rate = 16% per annum
Time = 5 years

S.I = $\frac{P\times R\times T}{100}$

$\Rightarrow 11,200=\frac{P\times 16\times 5}{100}$

$\Rightarrow 11,200\times 100=P\times 16\times 5$

$\Rightarrow P=\frac{11,200\times 100}{16\times 5}$

$\Rightarrow$ P = ₹14,000