Multiple choice

Raju took a loan at 8% per annum simple interest for a period of 5 years. At the end of five years he paid 10640 to clear his loan. How much loan did he take?

  1. 8500

  2. 8000

  3. 7700

  4. 7600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount = P + SI = P + (P * R * T) / 100 = P * (1 + (8 * 5) / 100) = P * (1 + 0.4) = 1.4P. 10640 = 1.4P. P = 10640 / 1.4 = 7600.

AI explanation

Let the loan principal be P. Using the simple interest formula, the total amount A equals P plus P times 8 times 5 divided by 100, which simplifies to 1.4P. Setting 1.4P equal to 10640 gives P equals 10640 divided by 1.4. This results in a principal of 7600.

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