Question

Karim borrowed some money at the rate of 6% per annum for the first 4 yr, at the rate of 7% per annum for the next 5 yr, and a rate of 8% per annum for the period beyond 9 yr. if he pays a total interest of Rs. 7885 at the end of 12 yr, how much money did he borrow?
1. 9550
2. 9950
3. 9900
4. 9500

Answer 1

Correct Answer - Option 4 : 9500

Given:

Rate for 1st 4 yr = 6%

Rate for next 5 yr = 7%

Rate beyond 9 yr = 8%

Total interest after 12 yr = Rs. 7885

Calculations:

Let the sum borrowed be P

The according to the question,

⇒ (P × 6 × 4) / 100 + (P × 7 × 5) / 100 + (P × 8 × 3) / 100 = 7885

⇒ 24P/100 + 35P/100 + 24P/100 = 7885

⇒ 83P/100 = 7885

⇒ P = 7885 × 100 / 83

⇒ P = 9500

∴ Karim borrowed Rs. 9500.