Suman paid Rs.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?

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SSC CGL 2022 Tier-I Official Paper (Held On : 03 Dec 2022 Shift 2)
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  1. Rs. 13,250
  2. Rs. 12,500
  3. Rs. 12,000
  4. Rs. 11,750

Answer (Detailed Solution Below)

Option 3 : Rs. 12,000
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Detailed Solution

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Given:

Suman paid Rs.9,600 in interest on a loan she obtained 5 years ago with a simple interest rate of 16%.

Concept used:

S.I = (P × T × R)/100

P = Sum

T = Time

R = Rate

Calculation:

Let the sum be Rs. x

According to the question,

9600 = (x × 16 × 5)/100

⇒ 9600 × 10 = 8x

⇒ x = 96000/8

⇒ x = 12000

So, the sum is Rs. 12000

∴ The amount of the loan she had taken was Rs. 12,000.

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