1.

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

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.



Discussion

No Comment Found

Related InterviewSolutions