Practicing Success
Anil lent a sum of ₹ 5,000 on simple interest for 10 years in such a way that the rate of interest is 6 % per annum for the first 2 years, 8 % per annum for the next 2 years and 10 % per annum beyond 4 years. How much interest (in ₹) will he earn at the end of 10 years? |
5,000 4,400 4,200 3,500 |
4,400 |
Principal(P)=Rs 5000 Time(T)=10 years Rate (for first 2 years)= 6% × 2 = 12% Rate (for next 2 years)= 8% × 2 = 16% and Rate (for next 6 years)= 10% × 6 = 60% Total rate of Int. for 10 years = 12 + 16 + 60 = 88% Simple interest = 88% of Principal = \(\frac{88}{100}\)×5000 = Rs 4400 |