Question

Arun borrowed a sum of money at the rate of $6\%$ per annum S.I. for the first two years, $9\%$ per annum for the next three years and $14\%$ per annum for the period beyond five years. If he pays a total of Rs. $11,400$ as interest only at the end of $9$ years, how much money did he borrow?

• A. $8,000$
• B. $15,200$
• C. $12,000$
• D. $60,800$

Answer 1

The correct option is C $12,000$

$LetsumborrowedbeP$

$S.Iforfirsttwoyears=\frac{P\times 6\times 2}{100}$

$=\frac{3P}{25}$

$S.Ifornext3years=\frac{P\times 9\times 3}{100}=\frac{27P}{100}$

$Remainingno.ofyears=9-(2+3)=4$

$\therefore S.Iforrestofperiod=\frac{P\times 14\times 4}{100}=\frac{14P}{25}$

$ATP,\frac{3P}{25}+\frac{27P}{100}+\frac{14P}{25}=11400$

$\frac{95P}{100}=11400$

$P=\frac{11400\times 100}{95}$

$=Rs.12000$

$Amt.borrowed=Rs.12000$