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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.

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