Question

Adam borrowed some money at the rate of 6% p.a. for the first two years, at the rate of 9% p.a. for the next three years, and at the rate of 14% p.a. for the period beyond five years. If he pays a total interest of Rs 11,400 at the end of nine-year, how much money did he borrow?

• A. Rs 10,000
• B. Rs 12,000
• C. Rs 14,000
• D. Rs 16,000

Answer 1

The correct option is B Rs 12,000

Let the sum borrowed be x. Then,
$\left(\frac{x\times 6\times 2}{100}\right)+\left(\frac{x\times 9\times 3}{100}\right)+\left(\frac{x\times 14\times 4}{100}\right)=11400$
$\Rightarrow (\frac{3x}{25}+\frac{27x}{100}+\frac{14x}{25})=11400\Rightarrow \frac{95x}{100}=11400$
$\Rightarrow x=\left(\frac{11400\times 100}{95}\right)=12000$.
Hence, sum borrowed = Rs 12,000.