Multiple choice

Arun borrowed a sum of money at the rate of $6\%$ per annum S.I. for the first two years, $9\%$ per annum for the next three years and $14\%$ per annum for the period beyond five years. If he pays a total of Rs. $11,400$ as interest only at the end of $9$ years, how much money did he borrow?

  1. $8,000$
  2. $15,200$
  3. $12,000$
  4. $60,800$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let P be the principal. Interest = P * (0.06*2 + 0.09*3 + 0.14*4) = 11400. P * (0.12 + 0.27 + 0.56) = 11400. P * 0.95 = 11400. P = 11400 / 0.95 = 12000.

AI explanation

Using the simple interest formula, the total interest is the sum of the principal multiplied by the respective rates and times: 11400 = P(0.06)(2) + P(0.09)(3) + P(0.14)(4). This equation simplifies to 11400 = P(0.12) + P(0.27) + P(0.56), or 11400 = 0.95P. Solving for the principal, we find P equals 12000.

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