A man invested one-third of his retirement gratuity at 6 percent simple interest, one-fourth of his gratuity at 7 percent, and the rest at 8 percent simple interest. If his annual return on these investments is Rs 7012.5, find the total amount of gratuity invested by the man.
ARs 89000
BRs 99000 ✓ Correct
CRs 95000
DRs 105000
Correct answer: (B) Rs 99000
Explanation
Total gratuity is Rs 99000.
Let the total be T; parts are T/3 at 6%, T/4 at 7%, and 5T/12 at 8%.
Annual interest = (T/3)(6/100) + (T/4)(7/100) + (5T/12)(8/100).
= 0.02T + 0.0175T + 0.033333T = 0.070833T.
0.070833T = 7012.5, so T = 99000.
Check: 1980 + 1732.5 + 3300 = 7012.5.
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