Multiple choice

Suman paid ₹9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%. What was the amount of the loan she had taken?

  1. ₹ 13,250

  2. ₹ 12,500

  3. ₹ 12,000

  4. ₹ 11,750
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the simple interest formula SI = P × R × T / 100, we substitute the known values: 9600 = P × 16 × 5 / 100. This gives P = 9600 × 100 / (16 × 5) = 960000 / 80 = ₹12,000. The interest earned over 5 years at 16% was ₹9,600 on a principal of ₹12,000.

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