Mr Faqir Chand took a loan from a bank at the rate of `8% p.(a)` simple interest. After 4 years he had to pay Rs.6,200 interest only for the period. The principal amount borrowed by him was:

Options

A. Rs.17,322
B. Rs.20,245
C. Rs.18,230
D. Rs.19,375

Answer

To find the principal amount borrowed by Mr. Faqir Chand, we can use the formula for simple interest:

\[ \text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \]

Where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount
- \( R \) = Rate of interest per annum
- \( T \) = Time in years

Given:
- \( SI = 6200 \) (the interest paid after 4 years)
- \( R = 8\% \)
- \( T = 4 \) years

We need to find \( P \).

### Step 1: Substitute the values into the formula

\[ 6200 = \frac{P \times 8 \times 4}{100} \]

### Step 2: Simplify the equation

First, calculate \( 8 \times 4 \):

\[ 8 \times 4 = 32 \]

Now substitute this back into the equation:

\[ 6200 = \frac{P \times 32}{100} \]

### Step 3: Multiply both sides by 100 to eliminate the fraction

\[ 6200 \times 100 = P \times 32 \]

\[ 620000 = P \times 32 \]

### Step 4: Divide both sides by 32 to solve for \( P \)

\[ P = \frac{620000}{32} \]

### Step 5: Perform the division

Calculating \( \frac{620000}{32} \):

\[ P = 19375 \]

Thus, the principal amount borrowed by Mr. Faqir Chand is:

\[ \text{Principal} = Rs. 19,375 \]

### Summary of the Solution:
The principal amount borrowed by Mr. Faqir Chand is Rs. 19,375.

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