Multiple choice

Mr. Vijender went to a bank on Monday and took a loan from the bank at 12% per annum at simple interest. He took the loan in the year 2013. In 2016, Mr. Vijender had to pay Rs. 5,400 as interest only for the period. Find the principal amount borrowed by him.

  1. Rs. 12,000

  2. Rs. 10,000

  3. Rs. 15,000

  4. Rs. 20,000

  5. Rs. 25,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = (P * R * T) / 100. Interest = 5400, R = 12, T = 2016 - 2013 = 3 years. 5400 = (P * 12 * 3) / 100. 5400 = 36P / 100. P = 540000 / 36 = 15000.

AI explanation

Assuming the loan was taken at the start of 2013 and held until the start of 2016, the time period is 3 years. Using the simple interest formula where interest equals principal times rate times time divided by 100, we substitute 5400 for the interest, 12 for the rate, and 3 for the time. Solving for the principal gives 5400 times 100 divided by the product of 12 and 3, which equals 540000 divided by 36. The principal amount borrowed by him was Rs. 15,000.

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