Question

Layla took a loan from vibha at rate of 8% per annum for 4 years. If she had to pay Rs. 2080 as simple interest then find amount loaned

1. Rs. 8500
2. Rs. 7500
3. Rs. 6500
4. Rs. 4500

Answer 1

Correct Answer - Option 3 : Rs. 6500

Given:

R = 8%

N = 4

I = Rs. 2080

Formula used:

I = P × R × N/ 100

A = P + I

Where, P = Principal amount, R = Rate of interest, N = number of years and I = Simple interest

Calculation:

Here, I = 2080, R = 8%, N = 4

⇒ 2080 = P × 8 × 4/ 100

⇒ P = 2080 × 100/ 32

⇒ P = Rs. 6500

∴ required answer is Rs. 6500