Multiple choice

Raj borrowed a certain sum of money from Rahul 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 he pays a total of Rs. 12100 as interest only at the end of 15 years, how much money did he borrow?

  1. Rs. 12000

  2. Rs. 18000

  3. Rs. 9000

  4. Rs. 15000

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

Interest for first 4 years at 5% = 20% of P. Next 6 years at 7.5% = 45% of P. Remaining 5 years at 9% = 45% of P. Total interest = (20 + 45 + 45)% of P = 110% of P = 12100. Principal P = 12100/1.1 = Rs. 11000. Option E (None of these) is correct since 11000 is not listed in A-D.

Keep practicing — related questions