Suman paid Rs.9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%. What was the amount of the loan she had taken?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Rs.12,000.
Given:
SI = 9600
Rate = 16%
Time = 5 years
Formula used:
SI = PRT/100 ---- (1)
where, P = principal amount, R = rate, T = time and SI = simple interest
Calculations:
Let the amount be x.
Using equation (1), we get
⇒ 9600 = (x × 16 × 5)/100
⇒ x = 12000
Hence, the amount of the loan she had taken is Rs 12000.