Multiple choice

Ravi borrowed some money at the rate of 4 p.c.p.a. for the first three years, at the rate of 8 p.c.p.a. for the next two years and at the rate of 9 p.c.p.a. for the period beyond 5 years. If he pays a total simple interest of Rs. 19,550/- at the end of 7 years, how much money did he borrow ?

  1. Rs. 39,500/-

  2. Rs. 42,500/-

  3. Rs. 41,900/-

  4. Rs. 43,000/-

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let principal be P. Total SI = P×4×3/100 + P×8×2/100 + P×9×2/100 = 12P/100 + 16P/100 + 18P/100 = 46P/100 = 19550. So P = 19550×100/46 = 42500. The calculation is straightforward: different rates apply to different time periods, and simple interest is calculated on the same principal throughout.