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Z paid Rs 10,920 after 4 years with 10% annual simple interest. How much did he borrow?A. Rs 7,600B. Rs 7,800C. Rs 8,200D. Rs 7,4001. A2. B3. D4. C |
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Answer» Correct Answer - Option 2 : B Given: Amount = Rs. 10920 Rate of interest = 10% Time = 4 years Formula used: SI = P × R% × T where, P = Principal, R = Rate of interest, T = Time Amount = P + SI Calculation: Let the principal sum be Rs. P. Amount = Principal + SI ⇒ 10920 = P + P × R% × T ⇒ 10920 = P(1 + 10/100 × 4) ⇒ 10920 = P(1 + 2/5) ⇒ 10920 = 7P/5 ⇒ P = Rs. 7800 ∴ The sum of money he borrowed is Rs. 7800. |
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