Multiple choice

Ravi borrowed a sum of money from the bank at an interest of 10.5% per annum and for 2.5 years. If he paid an interest of Rs.1863.75, which of the following could be the total sum borrowed by Ravi?

  1. Rs. 5140

  2. Rs. 7600

  3. Rs. 7100

  4. Rs. 6330

  5. Rs. 7231
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Rate of interest = 10.5 = 21/2% p.a. Simple Interest (S.I) = Rs.1863.75 T = 2.5 = 5/2 years Principal (P) =  (S.I x 100) / (R x T) = (1863.75 x 100 x 2 x 2) / (21 x 5) = Rs. 7100

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