A man took loan from a bank at the rate of 12% 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:
Aptitude
Simple Interest
Difficulty: Easy
Choose an option
Answer
Correct Answer: Rs. 15,000
Explanation
Given data
- Simple Interest (SI) paid after 3 years = Rs. 5400
- Rate of interest r = 12% p.a.
- Time t = 3 years
Formula
SI = (P × r × t) ÷ 100
Step 1: Substitute values5400 = (P × 12 × 3) ÷ 1005400 = (36P) ÷ 100
Step 2: Solve for principal PP = 5400 × 100 ÷ 36P = 540000 ÷ 36 = Rs. 15,000
Final Answer: The principal amount borrowed was Rs. 15,000.