Question
A person borrows money from a lender at a 16% p.a. simple
interest. If he repaid Rs. 6,960 after 48 months to settle the loan, find the principal amount.Solution
ATQ,
Let the borrowed amount be Rs ‘x’.
ATQ;
(6960 – x) = (x × 16 × 48) ÷ (100 × 12)
Or, (6960 – x) = (8x/25)
Or, 6960 = {(8x/25) + x}
Or, 6960 = (33x/25)
So, x = 5280
Therefore, the amount borrowed was Rs. 5,280.
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