Question

Raju took a loan from a bank at 10% simple interest per annum after 4 years he repaid rs. 5500. Find the sum he borrowed.

Answer 1

Given that,

Raju took a loan at $10\%$ simple interest per annum for $4$ years.

He repaid $Rs.5500$ after $4$ years.

To find out,

The sum he borrowed.

Let the borrowed sum be $Rs.P$

We know that, $SI=\frac{P\times R\times R}{100}$

$SI=\frac{P\times 4\times 10}{100}$

$=\frac{4P}{10}$

We also know that, $A=P+SI$

$\therefore 5500=P+\frac{4P}{10}$

$\Rightarrow 5500=\frac{14P}{10}$

$\Rightarrow P=\frac{5500\times 10}{14}$

$\therefore P=Rs.3928.57$

Hence, the sum Raju borrowed was $Rs.3928.57$.