Multiple choice

Rakesh took a loan for 6 years at 5% p.a. simple interest. If the total interest paid was Rs. 1,230 the principal was

  1. Rs. 4,100

  2. Rs. 5,000

  3. Rs. 5,300

  4. Rs. 4,920

  5. None of these
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A Correct answer
Explanation

Simple interest formula is I = (P * R * T) / 100. Given 1230 = (P * 5 * 6) / 100, we have 1230 = 30P / 100, so 1230 = 0.3P. P = 1230 / 0.3 = 4100.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, we substitute 1230 = (P * 5 * 6) / 100. This simplifies to 1230 = 0.3P, so P = 1230 / 0.3 = 4100. The principal was Rs. 4,100.

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