Question

The simple interest for first 2 year is 6% next 2 years is 7% and for any number of years exceeding 4 years is 8%. Find the total interest on a principal ‘P’ at the end of 7 years. 
1. P/2
2. P
3. 3P/2
4. 2P

Answer 1

Correct Answer - Option 1 : P/2

As we know,

SI = Prt/100

According to the question

SI = (P × 6 × 2)/100 + (P × 7 × 2)/100 + (P × 8 × 3)/100

⇒ SI = 12P/100 + 14P/100 + 24P/100

⇒ SI = 50P/100

∴ SI = P/2