If Raman borrowed some amount at the rate of 15% per annum on SI charged after every 4 months and in 44 months he pays total interest of Rs.16500, then how much amount Raman borrowed?
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A.
Rs.35000
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B.
Rs.30000
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C.
Rs.25000
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D.
Rs.20000
Correct Answer:
B. Rs.30000
Explanation:
To find the principal amount Raman borrowed, we use the simple interest formula: SI = (P × R × T) / 100.
Given: - Total Interest (SI) = Rs. 16500
- Annual Rate (R) = 15%
- Total Time = 44 months
- Compounding/Charging Cycle = 4 monthsSince the interest is charged every 4 months, we first determine the rate for that specific period. An annual rate of 15% means the rate for 4 months (which is 1/3 of a year) is 15% / 3 = 5%.
Next, we calculate the number of time periods (T). Since the total duration is 44 months and interest is charged every 4 months, there are 44 / 4 = 11 periods.
Now, substitute the values into the simple interest formula:
16500 = (P × 5 × 11) / 100
16500 = 55P / 100
1650000 = 55P
P = 1650000 / 55
P = 30000
Raman borrowed Rs. 30,000.
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