A borrows ₹89,500 for 3 years at 7% p.a. simple interest. B borrows the same amount at simple interest of 9% for the first year, 8% for the second year, and 7% for the third year. What is the total simple interest (in ₹) paid by A and B?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 40275.
SI = (P × R × T)/100
A's Interest = (89,500 × 7 × 3)/100 = ₹18,795
B's Interest of Year 1: = (89,500 × 9 × 1)/100 = ₹8,055
Year 2 = (89,500 × 8× 1)/100 = ₹7,160
Year 3 = (89,500 × 7 × 1)100 = ₹6,265
SIB = SI1 + SI2 + SI3 = ₹8,055 + ₹7,160 + ₹6,265 = ₹21,480
Total Interest Paid by A and B = SIA + SIB = ₹18,795 + ₹21,480 = ₹40,275