A man took a loan from a bank at the rate of 12 % per annum at simple interset. After 3 years he had to pay Rs. 5,400 as interset only for the period. The principal amount borrowed by him was :

Options

A. Rs 2,000
B. Rs 10,000
C. Rs 20,000
D. Rs 15,000

Answer

To find the principal amount borrowed by the man, we can use the formula for simple interest:

**Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) / 100**

Given:
- Rate (R) = 12% per annum
- Time (T) = 3 years
- Simple Interest (SI) = Rs. 5,400

We need to find the principal amount (P).

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

Using the formula for simple interest, we substitute the values we know:

\[ 5400 = P \times \frac{12 \times 3}{100} \]

### Step 2: Simplify the equation.

Calculate the rate and time:

\[ 5400 = P \times \frac{36}{100} \]

### Step 3: Rearrange the equation to solve for P.

To isolate P, we can multiply both sides by 100:

\[ 5400 \times 100 = P \times 36 \]

This simplifies to:

\[ 540000 = P \times 36 \]

### Step 4: Divide both sides by 36.

Now, we divide both sides by 36 to find P:

\[ P = \frac{540000}{36} \]

### Step 5: Calculate the value of P.

Perform the division:

\[ P = 15000 \]

### Conclusion:

The principal amount borrowed by the man was Rs. 15,000.

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