Multiple choice

Ravi borrows a certain amount of money from a bank at a simple interest rate of 10% per annum. After 4 years, he pays back a total of Rs. 6,300. What was the principal amount he borrowed?

  1. Rs. 4,100

  2. Rs. 4,300

  3. Rs. 4,500

  4. Rs. 4,700

  5. Rs. 4,900
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The total amount is Principal + Interest. Interest = P * R * T / 100 = P * 0.1 * 4 = 0.4P. Total amount = P + 0.4P = 1.4P. Given 1.4P = 6300, P = 6300 / 1.4 = 4500.

AI explanation

Let the principal be P; the amount formula for simple interest is A = P + (P * R * T) / 100. Substituting the values gives 6300 = P + (P * 10 * 4) / 100, which simplifies to 6300 = 1.4P. Solving this yields P = 6300 / 1.4, resulting in a principal of Rs. 4,500.

Keep practicing — related questions