Multiple choice

ICICI lent Rs. $1$ lakh to captain Ram Singh at $6\%$ per annum of simple interest for $10$ years period. Meanwhile ICICI ofered a discount in rate of interest for armed forces. Thus the rate of interest ICICI decreased to $4 \%$. In this way Ram Singh had to pay total amount $1.48$ lakh. After how many year Ram Singh got the discount in rate of interest ?

  1. $3$ years
  2. $4$ years
  3. $6$ years
  4. $5$ years
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B Correct answer
AI explanation

The total interest paid on the Rs. 1 lakh loan is 1.48 lakh - 1 lakh = 0.48 lakh, which equals Rs. 48,000. Letting x be the number of years at the original 6% rate, the total interest equation is 100000 * (6% * x + 4% * (10 - x)) = 48000. Dividing by 1000 simplifies this to 6x + 40 - 4x = 48, meaning 2x = 8 and x = 4. Ram Singh got the discount after 4 years.

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