Question
A man took a loan at a rate of 18% per annum simple
interest. After 42 months, he paid Rs. 9,240 to clear his dues. Find the initial loan amount.Solution
ATQ,
Let the loan amount be Rs ‘x’.
ATQ;
(9240 – x) = (x × 18 × 42) ÷ (100 × 12)
Or, (9240 – x) = (21x/35)
Or, 9240 = {(21x/35) + x}
Or, 9240 = (56x/35)
So, x = 5775
Therefore, the initial loan amount was Rs. 5,775.
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