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Question : Ramesh borrowed some money at a rate of 5% per annum for the first four years, 8% per annum for the next six years, and 12% per annum for the period beyond ten years. If the total interest paid by him at the end of twelve years is INR 9,016, then find the money borrowed by Ramesh.

Option 1: INR 9,816

Option 2: INR 9,800

Option 3: INR 9,016

Option 4: INR 9,616


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: INR 9,800


Solution : Rate for 1st 4 years = 5%
Rate for next 6 years = 8%
Rate beyond 10 years = 12%
Total interest after 12 years = INR 9,016
Let the sum borrowed be $P$
According to the question,
$\frac{(P × 5 × 4)}{100} + \frac{(P × 8 × 6)}{100} + \frac{(P × 12 × 2)}{100}$ = 9,016
⇒ $\frac{20P}{100} + \frac{48P}{100} + \frac{24P}{100}$ = 9,016
⇒ $\frac{92P}{100}$ = 9,016
⇒ $P$ = $\frac{9,016 × 100}{92}$
⇒ $P$ = 9,800
So, Ramesh borrowed INR 9,800.
Hence, the correct answer is INR 9,800.

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