Correct Answer - Option 2 : Rs. 11,000

**Given**

Amount = Rs. 13,200

Time = 4 years

Rate = 5% per an um

**Formula used**

Simple interest = (p × r × t)/100

Where p, r and t are principal, rate and time respectively.

Simple interest = Amount - Principal

**Calculation**

Let the principal is Rs. x

Simple interest = 13,200 - x

13,200 - x = (x × 5 × 4)/100

⇒ 1320000 - 100x = 20x

⇒ 1320000 = 120x

⇒ x = 1320000/120

⇒ x = Rs. 11,000

**∴ Rs. 11,000 is a sum borrowed by Mr Peter.**