Multiple choice

Arun borrowed a sum of money from Jayant at the rate of $8\%$ simple interest for the first four years, $10\%$ p.a. for the next $6$ years and $12\%$ p.a. beyond $10$ years. If he pays a total of Rs. $12160$ as interest only at the end of $15$ years, how much money did he borrow?

  1. Rs. $12000$
  2. Rs. $10000$
  3. Rs. $8000$
  4. Rs. $9000$
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C Correct answer
AI explanation

The total simple interest for 15 years is calculated for the different rates: 32% for the first 4 years, 60% for the next 6 years, and 60% for the remaining 5 years, summing to 152% of the principal. Using the interest formula, 12160 equals (Principal times 152) divided by 100. Solving this gives a principal of Rs. 8000.

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