Question

Rahul lent a certain amount of money to his friend at the rate of 6% per annum for 1^st 5 years, 8% per annum for next 7 years and 12% per annum for the period beyond 12 years, all at simple interest. If he received Rs. 8540 as total interest from his friend at the end of 15 years, then what was the amount of money Rahul lent to his friend?
1. 9000
2. 6800
3. 7000
4. 8500
5. 7200

Answer 1

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