Question

On a certain sum, rate of interest per annum for the first two years is 4%. The rate of interest for next four years is 6% and for the next three years is 8%. If total simple interest earned at the end of 9 years is ₹ 1120, then the sum is:
1. ₹2240
2. ₹1600
3. ₹1800
4. ₹2000

Answer 1

Correct Answer - Option 4 : ₹2000

Given:

rate of interest per annum for the first two years is 4%.

The rate of interest for next four years is 6% and for the next three years is 8%.

Formula used:

simple interest = (P × R × T)/100

Calculation:

Total simple interest for 9 years = 1120

⇒ P × [(2 × 4) + (4 × 6) + (3 × 8)]\100 = 1120

⇒ P × 56/100 = 1120

⇒ P = 2000 Rs.

∴ The sum is 2000 Rs.