A man borrowed Rs 40000 at simple interest. The rate of interest is \(x\%\) for the 1st year, \((x+3)\%\) for the 2nd year and \((x+6)\%\) for the 3rd year. At the end of the 3rd year, he pays Rs 52000 in all. Find the value of \(x\).
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 7
At simple interest every year's interest is on the same Rs 40000, so the three yearly rates simply add up.
Total interest \(=52000-40000=12000\)
Total rate over 3 years \(=x+(x+3)+(x+6)=(3x+9)\%\)
\(\displaystyle \frac{40000\times(3x+9)}{100}=12000\), so \(3x+9=30\)
\(x=7\)
The value of \(x\) is 7.