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

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

Solution:
Given,
Rate of interest, r = 12%= 12/100
Time, n = 3 years
Interest, I = Tk. 5400

Principal, P =?

We know,
I = Pnr
Or, 5400 = P × 3 × (12/100)
Or, P = (5400 × 100)/(3 × 12)
∴ P = 15000