Ramesh borrowed a sum at 5 per annum simple interest from

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Ramesh borrowed a sum at 5 per annum simple interest from Rahul. He returns the amount after 5years. Rahul returns 2 % of the total amount received. How much did Ramesh borrowed if he received Rs. 5?

Let the principal be Rs. P.
As we know that ,

S.I. =	Principal × Time × Rate
	100

SI =	P × T × R	= Rs.	P
	100		4

Amount = P +	P	= Rs.	5P
	4		4

According to the question,

⇒	5P	×	2	= 5
	4		100

⇒	P	= 5
	40

⇒ P = 40 × 5 = Rs. 200