Multiple choice

If a person repaid Rs. 22,500 after 10 years of borrowing a loan at 10% per annum simple interest, find what amount he had taken as a loan.

  1. Rs. 11,225

  2. Rs. 11,250

  3. Rs. 10,000

  4. Rs. 7,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total amount A = P(1 + rt/100). 22500 = P(1 + (10*10)/100) = P(1 + 1) = 2P. P = 22500 / 2 = 11250.

AI explanation

Using the simple interest formula Amount equals Principal multiplied by 1 plus RT, we set 22500 equal to P multiplied by 1 plus 0.1 times 10. This simplifies to 22500 equals 2P. Dividing 22500 by 2 gives the original loan principal of Rs. 11250.

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