Multiple choice

Anita borrowed a certain sum of money from Ankita at the rate of 5% per annum simple interest for the first four years and at the rate of 7.5% per annum for the next six years and at the rate of 9% per annum for the period beyond ten years. If she pays a total of ` 86900 as interest only at the end of 15 years, how much money did she borrow?

  1. 72000 Rs.

  2. 75500 Rs.

  3. 80000 Rs.

  4. 79000 Rs.

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let P be principal. Interest for first 4 years at 5% = P × 5 × 4/100 = 0.2P. Interest for next 6 years at 7.5% = P × 7.5 × 6/100 = 0.45P. Interest for remaining 5 years (years 11-15) at 9% = P × 9 × 5/100 = 0.45P. Total interest = 0.2P + 0.45P + 0.45P = 1.1P. Given 1.1P = 86900, so P = 86900/1.1 = Rs.79000.

Keep practicing — related questions