Multiple choice

A certain sum is lent at 4% p.a. for 3 years, 8% p.a. for the next 4 years, and 12% p.a. beyond 7 years. If for a period of 11 years, the simple interest obtained is Rs. 27,600, then the sum is (in Rs):

  1. 20000

  2. 30000

  3. 18000

  4. 25000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the sum be P. Interest for first 3 years at 4% = 0.12P. Interest for next 4 years at 8% = 0.32P. Interest for remaining 4 years at 12% = 0.48P. Total interest = 0.12P + 0.32P + 0.48P = 0.92P = Rs 27,600. Therefore P = 27600/0.92 = Rs 30,000. Option B is correct.

Keep practicing — related questions