A borrowed a loan from B at 6% per annum simple interest for 2 years and repaid Rs 48832 in all, including interest. What was the amount of the loan?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 43600
Under simple interest, the amount repaid = loan + interest, and the interest for 2 years at 6% is 12% of the loan.
Interest \(=6\%\times2=12\%\) of the loan
Amount repaid \(=112\%\) of the loan \(=\) Rs 48832
Loan \(\displaystyle =\frac{48832\times100}{112}=\) Rs 43600
The loan taken by A was Rs 43600.