Anil borrowed some money at simple interest. The rate of interest for the first 3 years was 5% for the next 2 years was 8% and for the next 4 year it was 10%. Beyond this it was 12% per annum. If he paid Rs. 8560, as interest for 12 years. How much money did he borrow?
Correct Answer: Rs. 8000
Explanation:
r1 = 5%
r2 = 8%
r3 = 10%
r4 = 12% t1 = 3 years
t2 = 2 years
t3 = 4 years
t4 = 12 - (3 + 2 + 4) = 3 years ∵ Principal = ( Interest x 100) / ( r1 t1 + r2 t2 + r3 t3 + r4 t4)
= (8560 x 100) / (5 x 3 + 8 x 2 + 10 x 4 + 12 x 3)
= 856000/107
= Rs. 8000
