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Anand deposited Rs 6000 on simple intere...

Anand deposited Rs 6000 on simple interest. He withdraw Rs 4000 and its interest from that amount after 2 years. After next 3 years, he withdraw the rest of the amount and its interest accrued till that time. In all he obtained Rs 900 as interest. The rate of interest per annum was

A

`3%`

B

`4%`

C

`5%`

D

`6%`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will first identify the key information and then calculate the rate of interest per annum. ### Step 1: Identify the total principal amount and the interest earned Anand deposited a total of Rs 6000. The total interest earned after all withdrawals is Rs 900. ### Step 2: Calculate the interest for the first 2 years Let's denote the rate of interest per annum as \( r \% \). The formula for simple interest is: \[ \text{Simple Interest} = \frac{P \times r \times t}{100} \] where: - \( P \) = Principal amount - \( r \) = Rate of interest per annum - \( t \) = Time in years For the first 2 years, the principal amount is Rs 6000: \[ \text{Interest for 2 years} = \frac{6000 \times r \times 2}{100} = \frac{12000r}{100} = 120r \] ### Step 3: Withdraw Rs 4000 and its interest after 2 years After 2 years, Anand withdraws Rs 4000 along with the interest earned on it: \[ \text{Total amount withdrawn} = 4000 + 120r \] ### Step 4: Calculate the remaining amount The remaining amount after the withdrawal is: \[ \text{Remaining amount} = 6000 - 4000 = 2000 \] ### Step 5: Calculate the interest on the remaining amount for the next 3 years The remaining amount of Rs 2000 will earn interest for the next 3 years: \[ \text{Interest for 3 years on Rs 2000} = \frac{2000 \times r \times 3}{100} = \frac{6000r}{100} = 60r \] ### Step 6: Total interest earned The total interest earned after 5 years (2 years + 3 years) is: \[ \text{Total Interest} = 120r + 60r = 180r \] According to the problem, this total interest equals Rs 900: \[ 180r = 900 \] ### Step 7: Solve for \( r \) Now, we can solve for \( r \): \[ r = \frac{900}{180} = 5 \] ### Conclusion The rate of interest per annum is \( \boxed{5\%} \).
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