Question

Raju took a loan at 8% per annum simple interest for a period of 5 years. At the end of five years he paid 10640 to clear his loan. How much loan did he take?

• A. 8500
• B. 8000
• C. 7700
• D. 7600

Answer 1

The correct option is D 7600

Simple Interest $SI=\frac{PNR}{100}$
And Amount $A=P+SI$
$=>Rs10640=P+\frac{P\times 5\times 8}{100}$
$=>Rs10640=P+0.4P$
$=>Rs10640=1.4$
$=>P=Rs7600$