Multiple choice

Passage

Read the following information carefully to answer the questions. Four persons (P, Q, R and S) are started a business together by investing the amount of Rs. 20000, Rs. 30000, Rs. 50000 and Rs. 60000 respectively. After 4 months, P and R increased the initial investment 20 % and 40 % respectively. At the end of the year, they earned a total profit of Rs. 171600. The person A and B borrows P and R’s share. They are giving 8 % simple interest for 4 years. The person C borrows Q’s total amount (ie., Initial investment + Profit) for 2 years at the rate of 6 % compound interest.

Find the interest amount, the person A have to paid for the person Q?

  1. Rs. 7584

  2. Rs. 7072

  3. Rs. 8156

  4. Rs. 6960

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To find the interest amount, identify the principal, rate, and time period from the data table. Apply the simple interest formula: I = P × R × T / 100. The answer Rs. 7072 represents the interest person A pays to person Q.

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