Question

Aman borrowed a certain sum of money from the bank at 10% per annum for 5 years. If he would pay Rs 1500 as interest after 5 years, then how much amount he borrowed?
1. Rs 3000
2. Rs 4500
3. Rs 2500
4. Rs 1000

Answer 1

Correct Answer - Option 1 : Rs 3000

Given 

Rate of Interest = 10% 

Time = 5 years 

Formula Used

Simple Interest = (Principal × Rate × Time)/100

Calculation

Let the principal be x 

⇒ 1500 = (x × 10 × 5)/100

⇒ x = (1500 × 100)/50

⇒ x = 3000 

∴ Aman borrowed money from the bank is Rs 3000