Multiple choice

A person borrowed some money from a bank @ 15% per annum interest. If he returns Rs.7250 after three years, then find the amount he had borrowed?

  1. Rs. 5000

  2. Rs. 4500

  3. Rs. 6500

  4. Rs. 5500
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest formula: SI = P × R × T ÷ 100. Total Amount = P + SI = P(1 + RT/100). Here, R = 15%, T = 3 years, so RT/100 = 45/100 = 0.45. Total = 1.45P = 7250. Therefore, P = 7250 ÷ 1.45 = Rs. 5000. Option B (4500) would give total 6525. Option C (6500) would give total 9425.

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