The interest on a certain loan for 5 years at 6 % was Rs. 120. What was the loan?

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Solution

Given, Rate = 6%. Time = 5 years and Interest = Rs. 120
Principal (Loan) = $\frac{100 \times I n t e r e s t}{R a t e \times T i m e}$ $= \frac{100 \times 120}{6 \times 5}$
= Rs.400

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The interest on a certain loan for 5 years at 6 % was Rs. 120. What was the loan?

Given, Rate = 6%. Time = 5 years and Interest = Rs. 120 Principal (Loan) = 100×InterestRate×Time=100×1206×5 = Rs.400

Given, Rate = 6%. Time = 5 years and Interest = Rs. 120
Principal (Loan) = $\frac{100 \times I n t e r e s t}{R a t e \times T i m e}$ $= \frac{100 \times 120}{6 \times 5}$
= Rs.400