Anil borrowed some money at simple interest. The rate of

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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 year 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 ?

1. Rs. 8000
2. Rs. 6000
3. Rs. 5000
4. Rs. 7000

Correct Option: A

r₁ = 5%
r₂ = 8%
r₃ = 10%
r₄ = 12%

t₁ = 3 years
t₂ = 2 years
t₃ = 4 years
t₄ = 12 - (3 + 2 + 4) = 3 years

∵ Principal = ( Interest x 100) / ( r₁ t₁ + r₂ t₂ + r₃ t₃ + r₄ t₄)
= (8560 x 100) / (5 x 3 + 8 x 2 + 10 x 4 + 12 x 3)
= 856000/107
= Rs. 8000