Correct Answer - Option 3 : 7000

**Given:**

Rahul lent a certain amount of money to his friend at the rate of 6% per annum for 1^{st} 5 years simple interest

8% per annum simple interest for next 7 years

12% per annum simple interest for the period beyond 12 years

**Formula used:**

Simple Interest = {Sum (P) × rate of interest (r) × time (t)}/100

**Calculation:**

Let the certain amount of money be Rs. x

S.I at 6% rate for 5 years = 30 × x/100

S.I at 8% rate for 7 years = 56 × x/100

S.I at 12% rate for (15 – 12) years i.e. for 3 years = 36 × x/100

According to the question

⇒ 30 × x/100 + 56 × x/100 + 36 × x/100 = 8540

⇒ 122 × x = 854000

⇒ x = 7000

∴ The amount of money Rahul lent to his friend was Rs. 7000