Question

Lataben borrowed some money from a bank at a rate of 10 p.c.p.a interest for 2(1/2) years to start a cottage industry. If she paid Rs 10250 as total interest, how much money had she borrowed?

Answer 1

Here, R = 10 p.c.p.a, T = 2.5 years, I = Rs 10250

Total interest = (P x R x T)/100

∴ 10250 = (P x 10 x 2.5)/100

∴10250 = (P x 25)/100

∴ (10250 x 100)/25 = P

∴ P = Rs. 41000

∴ Lataben had borrowed an amount of Rs. 41000 form the bank.