Simple Interest — The interest earned at 5%, 6%, and 8% in three consecutive years totals ₹ 760. Find the principal.
Aptitude
Simple Interest
Difficulty: Medium
Choose an option
Answer
Correct Answer: ₹ 4000
Explanation
Introduction / Context:Here the rate changes each year but simple interest is computed independently each year on the same principal, then summed.
Given Data / Assumptions:
- Year 1 rate = 5%.
- Year 2 rate = 6%.
- Year 3 rate = 8%.
- Total simple interest over 3 years = ₹ 760.
- Let principal be P.
Concept / Approach:Total SI = P * (0.05 + 0.06 + 0.08) = P * 0.19.
Step-by-Step Solution:P * 0.19 = 760.P = 760 / 0.19.P = ₹ 4000.
Verification / Alternative check:Check per year interest: 5% of 4000 = 200; 6% = 240; 8% = 320; sum = 760.
Why Other Options Are Wrong:₹ 4600, ₹ 3600, ₹ 3200, ₹ 5000 do not satisfy 0.19 * P = 760.
Common Pitfalls:Adding percentages incorrectly or treating it as compound interest across years.
Final Answer:₹ 4000