Ravi borrowed some money at the rate of 5% per annual for the first three year, 8% per annual for next two years, and 10% per annual for the period beyond 5 year. If he paid a total simpale interest of Rs 12750 at the end of 7 years. then how much money did he borrow?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 25000.
Let the sum of money borrowed be x.
SI = PRT/100
where P is principal, R is rate and T is time.
According to the given question,
(x × 5 × 3/100) + (x × 8 × 2/100) + (x × 10 × 2/100) = 12750
⇒ (x/100)(15 + 16 + 20) = 12750
⇒ 51 × x/100 = 12750
⇒ x = 25000