The rate of simple interest for first two years is 8% p.a. for the next 4 years, it is 10% p.a. and for the period beyond 6 years, it is 12% p.a. If a person gets Rs 18358.60 as simple interest after 9 years, then how much money (in Rs) did he invest?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 19955
Let the principal be P
For the first 2 years
Simple Interest = P × 8 × 2/100
⇒ 4P/25
For the next 4 years
Simple Interest = P × 4 × 10/100
⇒ 2P/5
For the next 3 years
Simple Interest = P × 3 × 12/100
⇒ 9P/25
Total interest in 9 years = Rs. 18358.60
⇒ (4P/25 + 2P/5 + 9P/25) = 18358.60
⇒ 23P/25 = 18358.60
⇒ P = 19955