Suman paid ₹9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%. What was the amount of the loan she had taken?
Answer & explanation
Correct answer: option 3
Let Principal(P) = 100%
Rate(R) = 16%
Timr(T) = 5 years
Interest(I)= Rate × Time = 16×5= 80%
ATQ
80% = Rs 9600
1% = \(\frac{9600}{80}\) = 120
100%= Rs 12000