Unmesh borrowed some money for 5 years at simple interest. The rate of interest is 9 p.c.p.a. If he returned 17400 rupees altogether at the end of 5 years, how much had he borrowed?

Open in App

Solution

$Interest = \frac{Principal \times Rate \times Time}{100}$
This formula cannot be used directly to solve the problem because we do not know either interest or principal. However, the interest on a principal of 100
rupees for 5 years is 45 rupees. Hence, the amount is 100+45=145 rupees. Now we can express the ratio of principal and amount in two ways and obtain
an equation.
If Unmesh's principal is $P$ then $\frac{P}{17400} = \frac{100}{145}$
$∴ P = \frac{100 \times 17400}{145} = 12000$
$∴$ The principal that Unmesh borrowed was 12000 rupees.

Suggest Corrections

Similar questions

Lataben borrowed some money from a bank at a rate of $10 %$ per annum interest for $2 \frac{1}{2}$ years to start a cottage industry. If she paid $R s . 10250$ rupees as total interest, how much money had she borrowed ?

Q. Javed deposited 12000 rupees at 9 p.c.p.a. in a bank for some years, and withdrew his interest every year. At the end of the period, he had received altogether 17,400 rupees. For how many years had he deposited his money ?

Q. Wasim borrowed some money at

6 %

p.a simple interest for the first four years,

8 %

p.a. for the next three years and

10 %

p.a for a period beyond

7

years. At the end of

12

years, he earned Rs

5880

as simple interest. How much money did he borrow?

Q- A sum of money was borrowed at 6% per annum simple interest. At the end of first year Rupees 6880 was paid off and the rate of interest on the balance was reduced to 5% per annum. If the interest for the second year was 11/20 of the interest for the first year what was the original sum borrowed?

(a) Rupees 10000

(b) Rupees 12000

(d) Rupees 15000

Q- A sum of money at simple interest amounts to Rupees 9440 in 3 years. If the rate of interest is increased by 25% by the same sum amounts to Rupees 9800 in the same time. The original rate of interest is

(a) 10% p.a.

(b) 8% p.a.

(d) 6% p.a.

Q- Ramesh borrowed Rupees 7000 from a bank on simple interest. He returned Rupees 3000 to the bank at the end of 3 years and Rupees 5450 at the end of 5 years and closed the account. Find the rate of interest p.a.

(a) 4%

(b) 5%

(d) 8%

Q. Nutan borrowed some money at rate of