A bank charged Rafiq ₹1,350 as simple interest on a loan taken for 3 years at 5% per annum. How much did he borrow?

Explanation

1. 01

   $P = \frac{\text{SI} \times 100}{R \times T} = \frac{1350 \times 100}{5 \times 3}$.

2. 02

   $P = \frac{135000}{15} = 9000$, so he borrowed ₹9,000.