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Anil borrowed some money at simple inter...

Anil borrowed some money at simple interest. The rate of interest for the first 3 years was` 5%` for the next 2 years was` 8%` and for the next 4 years it was` 10%`. Beyond this it was` 12%` per annum. If he paid Rs. 8560, as interest for 12 years. How much money did he borrow ?

A

Rs. 8000

B

Rs. 6000

C

Rs. 5000

D

Rs. 7000

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The correct Answer is:
To find out how much money Anil borrowed, we will use the formula for simple interest and the information provided in the question. ### Step-by-Step Solution: 1. **Identify the Interest Rates and Time Periods:** - For the first 3 years, the interest rate is 5%. - For the next 2 years (years 4 to 5), the interest rate is 8%. - For the next 4 years (years 6 to 9), the interest rate is 10%. - For the last 3 years (years 10 to 12), the interest rate is 12%. 2. **Calculate the Total Interest Contribution from Each Period:** - For the first 3 years: \[ \text{Interest} = P \times \frac{5}{100} \times 3 = 0.15P \] - For the next 2 years: \[ \text{Interest} = P \times \frac{8}{100} \times 2 = 0.16P \] - For the next 4 years: \[ \text{Interest} = P \times \frac{10}{100} \times 4 = 0.4P \] - For the last 3 years: \[ \text{Interest} = P \times \frac{12}{100} \times 3 = 0.36P \] 3. **Sum Up All the Interest Contributions:** \[ \text{Total Interest} = 0.15P + 0.16P + 0.4P + 0.36P = 1.07P \] 4. **Set Up the Equation Using the Given Total Interest:** - We know that the total interest paid over 12 years is Rs. 8560. \[ 1.07P = 8560 \] 5. **Solve for P (Principal Amount):** \[ P = \frac{8560}{1.07} \approx 8000 \] ### Conclusion: Anil borrowed approximately Rs. 8000.
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