Simple Interest — Piecewise annual rates over 9 years: A sum earns SI at 4% p.a. for the first 2 years, 6% p.a. for the next 4 years, and 8% p.a. for the period beyond 6 years. If total SI in 9 years is Rs 1120, find the principal.
Aptitude
Simple Interest
Difficulty: Medium
Choose an option
Answer
Correct Answer: Rs. 2000
Explanation
Introduction / Context:With simple interest, different flat rates over disjoint time blocks add linearly. Summing each block’s contribution gives the overall SI factor times the principal.
Given Data / Assumptions:
- Years 1–2: 4% p.a. ⇒ 0.04 * 2
- Years 3–6: 6% p.a. ⇒ 0.06 * 4
- Years 7–9: 8% p.a. ⇒ 0.08 * 3
- Total SI = Rs 1120 over 9 years
Concept / Approach:Total SI factor = 0.04*2 + 0.06*4 + 0.08*3. Multiply this factor by P to equal Rs 1120, then solve for P.
Step-by-Step Solution:
Factor = 0.08 + 0.24 + 0.24 = 0.56.0.56 * P = 1120 ⇒ P = 1120 / 0.56 = Rs 2000.Verification / Alternative check:
Block-wise SI on 2000: 160 + 480 + 480 = 1120 (matches).Why Other Options Are Wrong:
- 1500, 1800, 2500, 4000 produce total SI unequal to Rs 1120 using the same block factors.
Common Pitfalls:
- Misallocating years across blocks or mixing up rates.
Final Answer:Rs 2000.