Question

Kruti took a loan at simple interest at 6% in the first year with an increase of 0.5% in each subsequent year. She paid Rs 3375 as interest after 4 years. How much loan did she take ? 

(a) Rs 12500 

(b) Rs 15800 

(c) Rs 33250 

(d) Rs 30,000

Answer 1

(a) Rs 12500.

Let the loan taken be Rs x. Then,

\(\frac{x\times{6}\times1}{100}+\frac{x\times6.5\times1}{100}+\frac{x\times7\times1}{100}+\frac{x\times7.5\times1}{100}= 3375\)

⇒ \(\frac{27x}{100} = 3375 \) ⇒ x = \(\frac{3375\times100}{27}\) = Rs 12500.