Ravi took a loan from a bank at the rate of 8% p.a. simple interest. After 5 years, he had to pay an interest of Rs6,400 for the period. Find the principal amount borrowed by Ravi.

Correct option is A

Given:

Rate = 8% Time = 5 years Simple Interest = 6400

Formula Used: 

​$$SI = \frac{(P × R × T) }{ 100}$$​​

Solution:

According to the given conditions:

​$$SI =\frac{ (P × R × T) }{100}$$​​

by substituting values we get:

​$$=> 6400 = \frac{(P × 8 × 5) }{100 } \\\ \\=> 6400 × 100 = (P × 8 × 5) \\\ \\=> P = \frac{(6400 × 100) }{ (8 × 5) }\\\ \\=> P = 16000$$​​