The rate of interest for the first two years is 3% per annum for the next…
2025
The rate of interest for the first two years is 3% per annum for the next three years is 8% per annum and for the period beyond 5 years 10% per annum. If a man gets rupees 1520 as a simple interest for 6 years how much money did he deposit?
- A.
Rs. 3100
- B.
Rs. 4600
- C.
Rs. 5400
- D.
Rs. 3800
Attempted by 4 students.
Show answer & explanation
Correct answer: D
Key idea: compute the total simple interest rate over the 6-year period and use Interest = (rate% of principal).
Interest for first 2 years at 3% = 3% × 2 = 6%.
Interest for next 3 years at 8% = 8% × 3 = 24%.
Interest for the 6th year at 10% = 10% × 1 = 10%.
Total interest rate over 6 years = 6% + 24% + 10% = 40% of the principal.
Calculation: let the principal be P. Simple interest = 40% of P = 0.40P. Given interest = 1520, so 0.40P = 1520.
P = 1520 ÷ 0.40 = 3800.
Answer: Rs. 3800.