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Amount of simple interest earned in 7 ye...

Amount of simple interest earned in 7 years by Arun on the sum invested is Rs. 26000. If the rate of interest was 10% for first 2 years, 12% for next 2 years and 20% for remaining years then find the sum invested

A

Rs. 25000

B

Rs. 30000

C

Rs. 35000

D

Rs. 20000

Text Solution

AI Generated Solution

The correct Answer is:
To find the sum invested by Arun, we need to calculate the total simple interest earned over 7 years using the different rates for each period. ### Step-by-Step Solution: 1. **Identify the given values**: - Total Simple Interest (SI) = Rs. 26,000 - Time periods and rates: - First 2 years: Rate = 10% - Next 2 years: Rate = 12% - Remaining 3 years: Rate = 20% 2. **Let the principal amount be \( P \)**. 3. **Calculate the simple interest for each time period**: - For the first 2 years at 10%: \[ SI_1 = \frac{P \times 10 \times 2}{100} = \frac{20P}{100} = \frac{P}{5} \] - For the next 2 years at 12%: \[ SI_2 = \frac{P \times 12 \times 2}{100} = \frac{24P}{100} = \frac{6P}{25} \] - For the remaining 3 years at 20%: \[ SI_3 = \frac{P \times 20 \times 3}{100} = \frac{60P}{100} = \frac{3P}{5} \] 4. **Combine the simple interests**: \[ Total \, SI = SI_1 + SI_2 + SI_3 \] \[ Total \, SI = \frac{P}{5} + \frac{6P}{25} + \frac{3P}{5} \] 5. **Find a common denominator to combine the fractions**: - The common denominator for 5 and 25 is 25. - Convert each term: \[ \frac{P}{5} = \frac{5P}{25} \] \[ \frac{3P}{5} = \frac{15P}{25} \] - Now, combine: \[ Total \, SI = \frac{5P}{25} + \frac{6P}{25} + \frac{15P}{25} = \frac{(5P + 6P + 15P)}{25} = \frac{26P}{25} \] 6. **Set the total simple interest equal to Rs. 26,000**: \[ \frac{26P}{25} = 26000 \] 7. **Solve for \( P \)**: \[ 26P = 26000 \times 25 \] \[ 26P = 650000 \] \[ P = \frac{650000}{26} = 25000 \] ### Final Answer: The sum invested by Arun is Rs. 25,000.
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