A certain sum is lent at 4% p.a. for 3 years, 8% p.a. for the next 4 years, and 12% p.a. beyond 7 years. If for a period of 11 years, the simple interest obtained is Rs 27,600, then the sum is (in Rs):
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 30,000
Concept
Total Simple Interest Percentage
For first 3 years = 4 x 3 = 12%
For next 4 years = 8 x 4 = 32%
For remaining period = 12 x 4 = 48%
Total Rate of Interest = ( 12 + 32 + 48) = 92%
Application
S.I. = (P × R × T)/100
27,600 = (P x 4 x 3 ) / 100 + (P x 4 x 8 ) / 100 + (P x 4 x 12 ) / 100
Upon solving
P = Rs 30,000