4 Views

Question : Ramesh borrowed a sum at 5% per annum simple interest from Rahul. He returns the amount after 5 years. Rahul returns 2% of the total amount received. How much did Ramesh borrow if he received Rs. 5?

Option 1: Rs. 250

Option 2: Rs. 200

Option 3: Rs. 150

Option 4: Rs. 175


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs. 200


Solution : Given: Rate of interest = 5%
Time period = 5 years
Let the Principal be $P$.
Substituting the given values, we get:
Simple Interest = $\frac{P×5×5}{100}$
Simple Interest = $\frac{P}{4}$
Amount = $P+\frac{P}{4}=\frac{5P}{4}$
According to the given condition,
$\frac{5P}{4}×\frac{2}{100}=5$
⇒ $\frac{P}{40}=5$
⇒ $P=200$
Hence, the correct answer is Rs. 200.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books