A man took a loan from a bank at the rate of 11% p.a. simple interest. After three years, he had to pay ₹9,570 interest only for the period. The principal amount borrowed by him was:
Answer & explanation
Correct answer: option 4
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
9570 = \(\frac{Principal ×11 × 3 }{100}\)
Principal = \(\frac{9570×100 }{11×3}\)
= 29000