Ravi borrowed some money at the rate of 4 p.c.p.a. for the first three years, at the rate of 8 p.c.p.a. for the next two years and at the rate of 9 p.c.p.a. for the period beyond 5 years. If he pays a total simple interest of 19,550 at the end of 7 years, how much money did he borrow?
a) 39,500
b) 42,500
c) 41,900
d) 43,000
e) None of these

1 Answer

Answer :

Let the amount borrowed be Rs P
Total amount of simple interest = (P×3×4)/100 + (p×2×8)/100 + (p×2×9)/100 = 19550
0.12P + 0.16P + 0.18P = 19550
0.46p= 19550
P = Rs. 42500
Answer: b)

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