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A certain sum is lent at 5% p.a. for 2 y...

A certain sum is lent at 5% p.a. for 2 years, 9% p.a. for the next 3 years and 13% p.a. after 5 years. If the simple interest on the sum for a period of 10 years is 8,160, then the sum (in) is:

A

8000

B

9000

C

8400

D

9600

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to calculate the principal amount (sum) based on the given interest rates and the total simple interest earned over 10 years. ### Step-by-Step Solution: 1. **Identify the Variables**: - Let the principal amount be \( P \). - The interest rates and their respective time periods are: - 5% per annum for 2 years - 9% per annum for 3 years - 13% per annum for 5 years - Total simple interest earned over 10 years is \( 8160 \). 2. **Calculate the Simple Interest for Each Period**: - For the first 2 years at 5%: \[ \text{SI}_1 = \frac{P \times 5 \times 2}{100} = \frac{10P}{100} = 0.1P \] - For the next 3 years at 9%: \[ \text{SI}_2 = \frac{P \times 9 \times 3}{100} = \frac{27P}{100} = 0.27P \] - For the last 5 years at 13%: \[ \text{SI}_3 = \frac{P \times 13 \times 5}{100} = \frac{65P}{100} = 0.65P \] 3. **Sum Up the Simple Interests**: - Total simple interest over 10 years: \[ \text{Total SI} = \text{SI}_1 + \text{SI}_2 + \text{SI}_3 = 0.1P + 0.27P + 0.65P = (0.1 + 0.27 + 0.65)P = 1.02P \] 4. **Set Up the Equation**: - We know that the total simple interest is \( 8160 \): \[ 1.02P = 8160 \] 5. **Solve for \( P \)**: - Divide both sides by \( 1.02 \): \[ P = \frac{8160}{1.02} = 8000 \] 6. **Conclusion**: - The principal amount (sum) is \( 8000 \). ### Final Answer: The sum is \( 8000 \).
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