Question

Akash took a loan from a bank at the rate of 10% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
1. Rs. 2000
2. Rs. 10000
3. Rs. 18,000
4. Rs. 20000
5. None of these

Answer 1

Correct Answer - Option 3 : Rs. 18,000

Given,

Rate = 10% p.a.  

After 3 years he had to pay Rs. 5400 interest only for the period

Formula used: 

S.I. = PTR ÷ 100

Calculations:  

Principal = S.I. × 100 ÷  RT

⇒ Principal = ((100 × 5400) ÷ (10 × 3))

⇒ Principal = Rs. 18000

∴ The required answer is Rs. 18,000