Question

Lataben borrowed some money from a bank at a rate of $10p.c.p.a.$ interest for $2\frac{1}{2}$ years to start a cottage industry. If she paid $Rs.10,250$ as total interest, how money had she borrowed?

Answer 1

Given,

Lataben borrowed some money from a bank at an interest of $10p.c.p.a$

Time $=2\frac{1}{2}years$

Total interest paid $=Rs.10,250$

also given, to find out how much amount did Lataben actually borrow from the bank.

Let the money borrowed be $=P$

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

$\Rightarrow I=\frac{P\times 2\frac{1}{2}\times 10}{100}$

$\Rightarrow 10,250=\frac{P\times \frac{5}{2}\times 10}{100}$

$10,250\times 100=P\times 25$

$P=\frac{10,250\times 100}{251}$

$P=10,250\times 4=41,000$

Amount taken by Lataben from bank $=41,000Rs.$