Z paid Rs 10,920 after 4 years with 10% annual simple interest. How much did he borrow?
A. Rs 7,600
B. Rs 7,800
C. Rs 8,200
D. Rs 7,400
1. A
2. B
3. D
4. C
Z paid Rs 10,920 after 4 years with 10% annual simple interest. How much did he borrow?
A. Rs 7,600
B. Rs 7,800
C. Rs 8,200
D. Rs 7,400
1. A
2. B
3. D
4. C
1. A
2. B
3. D
4. C
Correct Answer – Option 2 : B
Given:
Amount = Rs. 10920
Rate of interest = 10%
Time = 4 years
Formula used:
SI = P × R% × T
where, P = Principal, R = Rate of interest, T = Time
Amount = P + SI
Calculation:
Let the principal sum be Rs. P.
Amount = Principal + SI
⇒ 10920 = P + P × R% × T
⇒ 10920 = P(1 + 10/100 × 4)
⇒ 10920 = P(1 + 2/5)
⇒ 10920 = 7P/5
⇒ P = Rs. 7800
∴ The sum of money he borrowed is Rs. 7800.