Kabir paid Rs. 9600 as interest on a loan he took 5 years ago at 16% rate of simple interest. What was the amount he took as loan?

Question

Quizplus · Accepted Answer

The formula for simple interest is $I = P \times R \times T / 100$, where $I$ is the interest, $P$ is the principal amount (the initial loan amount), $R$ is the rate of interest per annum, and $T$ is the time in years. Given $I = 9600$, $R = 16\%$, and $T = 5$ years, we can rearrange the formula to solve for $P$: $P = I \times 100 / (R \times T)$. Substituting the given values, $P = 9600 \times 100 / (16 \times 5) = 12000$.

Kabir Paid Rs