A person borrowed a certain sum at 8% p.a. simple interest and in 8 years, the interest accrued was ₹5,490 less than the sum borrowed. The sum was:
Answer & explanation
Correct answer: option 2
Let initial sum = P
We know,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
P - 5490 = \(\frac{P × 8 × 8 }{100}\)
P - 5490 = \(\frac{64P }{100}\)
\(\frac{36P }{100}\) = 5490
P = 152.5 × 100 = Rs. 15250