The rate of interest for the first 2 years is 6% p.a. for the next 3 years is 10% p.a. and for the period beyond 5 years is 12% p.a.If a person gets Rs 12, 771 as simple interest after 7 years, then how much money didhe invest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 19,350.
Let the Principal is 'p' then,
2 years = 2 × 6 = 12%
3 years = 3 × 10% = 30%
2 years = 2 × 12 = 24%
Total interest received in 7 years = 12 + 30 + 24 = 66% of the initial principal.
66% = 12771
100% = 12771/66 × 100 = 19350.