Question

A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs.5,400 interest only for the period. The principal amount borrowed by him was:
1. Rs. 2,000
2. Rs. 10,000
3. Rs. 15,000
4. Rs. 20,000

Answer 1

Correct Answer - Option 3 : Rs. 15,000

Given:

The rate of interest is 12%.

Simple interest after 3 years is Rs.5400.

Formula Used:

Simple interest = Principal × Rate × Time/100

Calculation:

Let the principal amount be x.

⇒ SI = x × 12 × 3/100

⇒ 5400 = x × 12 × 3/100

⇒ x = Rs.15000

∴ The principal amount borrowed by him was Rs.15000.