Smith borrowed some money at the rate of 10% p.a. for the first 2years, at the rate of 12% p.a. for ...
Smith borrowed some money at the rate of 10% p.a. for the first 2years, at the rate of 12% p.a. for the next three years, and at the rate of 16% p.a. for the period beyond five years. If he pays a total interest of $ 600 at the end of 9years, how much money did he borrow?
Answer/Solution
$500
Steps/Work
Let the sum borrowed be x
(x*2*10/100)+(x*12*3/100)+(x*16*4/100) = 600
(20x/100)+(36x/100)+(64x/100) = 600
120x/100 = 600
x = 500
Answer is D
(x*2*10/100)+(x*12*3/100)+(x*16*4/100) = 600
(20x/100)+(36x/100)+(64x/100) = 600
120x/100 = 600
x = 500
Answer is D