A person paid an interest of Rs 11,400 after 9 years on simple interest: 6% for the first 2 years, 9% for the next 3 years, and 14% for the next 4 years. How much principal did he borrow?
ARs 12,000 ✓ Correct
BRs 11,400
CRs 11,000
DRs 10,000
Correct answer: (A) Rs 12,000
Explanation
The principal borrowed was Rs 12,000.
Total interest rate = 6 x 2 + 9 x 3 + 14 x 4 percent.
= 12 + 27 + 56 = 95% of the principal.
So P x 95 / 100 = 11400.
P = 11400 x 100 / 95 = 12000.
In simple interest, add rate x time for each slab.
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