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    Question

    A person took a loan from a bank at a 20% p.a. simple

    interest. If after 30 months, he repaid Rs. 7,500 to settle his debt, find the principal amount he borrowed.
    A Rs.4641 Correct Answer Incorrect Answer
    B Rs.5467 Correct Answer Incorrect Answer
    C Rs.5000 Correct Answer Incorrect Answer
    D Rs.6250 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the borrowed amount be Rs ‘x’.

    ATQ;

    (7500 – x) = (x × 20 × 30) ÷ (100 × 12)

    Or, (7500 – x) = (5x/10)

    Or, 7500 = {(5x/10) + x}

    Or, 7500 = (15x/10)

    So, x = 5000

    Therefore, the borrowed amount was Rs. 5,000

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