Multiple choice

Adam borrowed some money at the rate of 6% per annum for the first two years, at the rate of 9% per annum for the next three years, and at the rate of 14% per annum for the period beyond five years. If he pays a total interest of Rs. 11400 at the end of nine years, how much money did he borrow?

  1. 10000

  2. 11000

  3. 12000

  4. 13000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The total interest percentage over the 9 years is (6% * 2) + (9% * 3) + (14% * 4) = 12% + 27% + 56% = 95% of the principal. Since the total interest paid is Rs. 11400, we have 0.95 * P = 11400, which gives P = 12000.

AI explanation

Let the principal be P. Using the simple interest formula, the total interest for 9 years is the sum of the interests for the three different periods: (P x 6 x 2)/100 + (P x 9 x 3)/100 + (P x 14 x 4)/100 = 11400. This simplifies to 12P/100 + 27P/100 + 56P/100 = 11400, so 95P/100 = 11400. Solving for P gives P = (11400 x 100) / 95, which equals Rs. 12000.

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