Multiple choice

A borrows Rs. 89,500 for 3 years at 7% p.a. simple interest. B borrows the same amount at 9% simple interest for the first year, 8% for the second year, and 7% for the third year. What is the total simple interest (in Rs.) paid by A and B?

  1. 42,075

  2. 40,275

  3. 47,025

  4. 45,027
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A's interest: 89500 * 0.07 * 3 = 18795. B's interest: 89500 * (0.09 + 0.08 + 0.07) = 89500 * 0.24 = 21480. Total interest = 18795 + 21480 = 40275.

AI explanation

Using the simple interest formula SI = (Principal * Rate * Time) / 100, A's interest is (89500 * 7 * 3) / 100 = 18795. B's total interest rate over the three years is the sum of the annual rates: 9% + 8% + 7% = 24%. B's interest equals (89500 * 24) / 100 = 21480. The total interest paid by both is 18795 + 21480 = 40275. The result is Rs. 40,275.

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