Question

Loan at 12% SI for 3 years gives Rs. 5400 interest. Find principal.

• A. Rs.2000
• B. Rs.10000
• C. Rs.15000
• D. Rs.20000

Hint:

Remember the simple interest formula and be able to rearrange it to find any variable. Always double-check that the rate and time units are consistent (e.g., rate per annum, time in years).

Answer 1

The Correct Option is C

Step 1: At 12% per annum for 3 years, the total interest rate over the whole period is \( 12 \times 3 = 36\% \) of the principal.

Step 2: This means Rs. 5400 represents 36% of the principal, so 1% of the principal equals \( \frac{5400}{36} = 150 \).

Step 3: Scaling up to the full 100%, the principal is \( 150 \times 100 = 15000 \).
\[ \boxed{\text{Rs. } 15000} \]