Multiple choice

The rate of simple interest on a sum of money is 5% p.a. for the first 4 years, 8% p.a. for the next 3 years and 10% p.a. for the period beyond 7 years. If the simple interest accrued by the sum over a period of 10 years is Rs. 1,850, then the sum is:

  1. Rs. 1,500

  2. Rs. 2,750

  3. Rs. 1,650

  4. Rs. 2,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest is calculated as (P * R * T) / 100. For 10 years, the interest is (P * 5 * 4)/100 + (P * 8 * 3)/100 + (P * 10 * 3)/100 = 1850. This simplifies to (20P + 24P + 30P)/100 = 1850, or 74P/100 = 1850. Solving for P gives 185000 / 74 = 2500.

AI explanation

The total simple interest for the 10 years is calculated by multiplying the principal by the respective rates and times, giving 1850 equals principal times 4 times 5 divided by 100 plus principal times 3 times 8 divided by 100 plus principal times 3 times 10 divided by 100. This simplifies to 1850 equals 0.74 times the principal, so dividing 1850 by 0.74 gives Rs. 2500.

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