Multiple choice

Anil lent a sum of ₹5,000 on simple interest for 10 years in such a way that the rate of interest is 6% per annum for the first 2 years, 8% per annum for the next 2 years and 10% per annum beyond 4 years. How much interest (in ₹) will he earn at the end of 10 years?

  1. 5,000

  2. 4,400

  3. 4,200

  4. 3,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For first 2 years: 5000 × 6% × 2 = ₹600. For next 2 years: 5000 × 8% × 2 = ₹800. For remaining 6 years: 5000 × 10% × 6 = ₹3,000. Total interest = 600 + 800 + 3,000 = ₹4,400. The key is calculating each time period at its respective rate.

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