Randhir 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?
Answer & explanation
Correct answer: option 2
ROI = 16%, Time = 5 years, Simple interest for 5 years = 80%, Interest after 5 years = 9600
So, we can say that 9600 is the value of 80%
Principle (Amount he took as loan)= \(\frac{ 9600}{80 }\) x 100 = Rs. 12000