A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

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Question: A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

[A].

Rs. 2000

[B].

Rs. 10,000

[C].

Rs. 15,000

[D].

Rs. 20,000

Answer: Option C

Explanation:

Principal = Rs. 100 x 5400 = Rs. 15000.
12 x 3