Multiple choice

The rate of interest for the first 2 years is 6% p.a., for the next 3 years it is 10% p.a., and for the period beyond 5 years it is 12% p.a. If a person gets Rs. 12,771 as simple interest after 7 years, then how much money did he invest?

  1. Rs. 20,000

  2. Rs. 19,350

  3. Rs. 19,450

  4. Rs. 19,300

  5. Rs. 19,550
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest = P * R * T / 100. Interest = P * [(6*2)/100 + (10*3)/100 + (12*2)/100] = P * [0.12 + 0.30 + 0.24] = P * 0.66. 12771 = P * 0.66. P = 12771 / 0.66 = 19350.

AI explanation

To find the total simple interest, calculate the interest for each period and add them together: P times 6 times 2 divided by 100, plus P times 10 times 3 divided by 100, plus P times 12 times 2 divided by 100. This gives 0.12P plus 0.3P plus 0.24P, totaling 0.66P. Setting this equal to the total interest of Rs. 12,771, we have 0.66P equals 12,771, which means the principal invested is Rs. 19,350.

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