The repayment of a loan after 6 years at rate of 24% simple interest is Rs…

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The repayment of a loan after 6 years at rate of 24% simple interest is Rs 73200. What is the amount borrowed ?

  1. A.

    Rs 42000

  2. B.

    Rs 30800

  3. C.

    Rs 45000

  4. D.

    Rs 30000

Attempted by 35 students.

Show answer & explanation

Correct answer: D

Given: Time = 6 years, Rate = 24% per annum, Repayment amount (A) = Rs 73,200.

Formula: A = P + (P × r × t) / 100

  1. Substitute the values into the formula: 73,200 = P + (P × 24 × 6) / 100.

  2. Compute the interest factor: (24 × 6) / 100 = 144 / 100 = 1.44, so repayment becomes 73,200 = P + 1.44P = 2.44P.

  3. Solve for P: P = 73,200 / 2.44 = (73,200 × 100) / 244 = 7,320,000 / 244 = 30,000.

Therefore the amount borrowed is Rs 30,000.

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