If Ramesh borrows a certain amount from Vikram at simple interest at the rate of 7.5% per annum for four years. What is the principal amount if the total interest that Ramesh has to pay is Rs. 18600?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs. 62000.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
Now, According to the question
⇒ 18600 = (P × 7.5 × 4)/100
⇒ 18600 = 30P/100
⇒ 3P = 186000
⇒ P = 62000
Hence, the principal amount is Rs. 62,000