Ramya borrowed a loan from a bank for buying a computer. After 4 years she paid Rs. 26,640 and settled the account. If the rate of interest is 12% per annum what was the sum she borrowed?
T = 4 years
R = 12%
After 4 years she paid Rs. 26,640.
This is nothing but amount.
Let the principal borrowed be R Amount = principal + *.I.
∴ Simple interest = Amount – principal *.I. = 26,640 – P
The principal borrowed – Rs. 18,000
