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.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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