Question

The rate of simple interest on a sum of money is $6\%$ per annum for the first $3$ years, $8\%$ per annum for the next $5$ years and $10\%$ per annum for the period beyond $8$ years. If the simple interest accrued by the sum for a total period of $10$ years is Rs. $1,560$, what is the sum?

Accepted Answer

C. Total interest percentage over $10$ years: - First $3$ years at $6\% = 18\%$ - Next $5$ years at $8\% = 40\%$ - Remaining $2$ years at $10\% = 20\%$ Total effective interest rate $= 18\% + 40\% + 20\% = 78\%$. Given SI $= 1560$: $$0.78 P = 1560 \implies P = \frac{1560}{0.78} = 2000$$

Simple Interest Split Across Periods

Explanation

Practise this under exam conditions