A businessman borrowed a sum at 6% per annum for the first 2 years. He then renegotiated the terms and paid interest at 8% per annum for the next 4 years. For the remaining 4 years, the rate increased to 10% per annum. If the total simple interest paid over the 10 years was ₹33,600, what was the original amount borrowed?

(a) Rs. 35000

(b) Rs. 38000

(c) Rs. 40000

(d) Rs. 45000

Question

A businessman borrowed a sum at 6% per annum for the first 2 years. He then renegotiated the terms and paid interest at 8% per annum for the next 4 years. For the remaining 4 years, the rate increased to 10% per annum. If the total simple interest paid over the 10 years was ₹33,600, what was the original amount borrowed?

(a) Rs. 35000

(b) Rs. 38000

(c) Rs. 40000

(d) Rs. 45000

TutorArc · Accepted Answer

Total interest:

Interest = P * (6 &times; 2 + 8 &times; 4 + 10 &times; 4)/100 = 84P/100​ 

According to question:

84P/100 = 33600

&rArr; P = 40,000

Hence, correct option is c.

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