Question
A banker gives loan at 13% per year in simple interest. The bank collects £1300 over a period of 2 years in interest. __________ is the amount given on loan.
- 5000
- 1250
- 1524
- 1400
Hint:
S.I = (P x T x R )/100
The correct answer is: 5000
P= ?, R= 13%= 0.13 , T = 2 year, I = £1300
Simple interest, I = PRT
£1300 = P × 0.13 × 2
P = = £5000
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