A man takes a loan of some amount at some rate of simple interest. After three years, the loan amount is double and rate of interest is decrease by 2%. After 5 years, if the total interest paid on the whole is Rs. 13,600, which is equal to the same when the first amount was taken for 
years, then the loan taken initially is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e Rs.10,000.
| Understanding/Application |
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Let the principal be p and rate be r. |
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Acc. to the question - (p × r × 3)/100 + (2p × (r - 2) × 5)/100 = 13600 3pr/100 + 10pr/100 - 20p/100 = 13600 13pr/100 - 20p/100 = 13600 ....(i) Interest of p after 11(1/3) years at the rate of r% = Rs. 13600 {p × (34/3) × r)/100 = 13600 pr = 1,20,000 Substituting value of pr in eq(i) - (13 × 120000)/100 - 20p/100 = 13600 15600 - p/5 = 13600 p/5 = 2000 p = 10000 Thus, the loan taken was Rs. 10,000. |