The rate of simple interest on a sum of money is 5% p.a. for the first 4 years, 8% p.a. for the next 3 years and 10% p.a. for the period beyond 7 years. If the simple interest accrued by the sum over a period of 10 years is ₹1,850, then the sum is:
Answer & explanation
Correct answer: option 3
Let sum = P
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
\(\frac{P ×5 × 4 }{100}\) + \(\frac{P ×8× 3 }{100}\) + \(\frac{P ×10 × 3 }{100}\) = 1850
20P + 24P + 30P = 185000
74P = 185000
P = Rs.2500