A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
Explanation
Principal = Rs(100×540012×3)=Rs. 15000
The actual formula is (interest of 3 years*100)/(month in a year*total years).
5400*100 we will get 540000 12*3 we will get 36 540000/36=15000