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    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.
    A Rs.4641 Correct Answer Incorrect Answer
    B Rs.5775 Correct Answer Incorrect Answer
    C Rs.5000 Correct Answer Incorrect Answer
    D Rs.6250 Correct Answer Incorrect Answer

    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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