Multiple choice

Ranjeet borrowed some money at the rate of 4% per annum for the first 3 years, at the rate of 8% per annum for the next 2 years and at the rate of 9% per annum 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. 35000

  2. 42500

  3. 38000

  4. 45200

  5. None of these

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

Let P be the principal. Total SI = P × 4% × 3 + P × 8% × 2 + P × 9% × 2 = P(0.12 + 0.16 + 0.18) = 0.46P = 19550. So P = 19550/0.46 = 42500. The interest varies over 3 different time periods totaling 7 years.