Discussion

Question:

To repay a sum of money borrowed 10 months earlier a man agreed to pay Rs. 2119. Find the amount borrowed if the rate interest charged was 2.25% p.a.

Explanation:

Rate of interest for a year is given as 2.25%

⇒ Rate of interest for only per month = $\frac{2.25}{12} %$

⇒ S.I. = 2119 – P = $\frac{(P \times \frac{2.25}{12} \times 10)}{100}$ (Considering time in months and rate of interest as %/month)

⇒ P = 2080

Hence, option (a).

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