Rahul borrowed a sum of money at simple interest of 6% per annum for the first 2 years, 8% per annum for the next 3 years, and 4% per annum for the period beyond 5 years. If he pays a total of ₹5,600 as interest only at the end of 10 years, how much money did he borrow?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹10000.
Let principal = P
Interest for first 2 years = 6% × 2 = 12%
Interest for next 3 years = 8% × 3 = 24%
Interest for last 5 years = 4% × 5 = 20%
Total interest rate for 7 years = 12% + 24% + 20% = 56%
So, (86/100) × P = 5600
⇒ P = 5600/0.56 = 10000