Question

A borrows ₹89,500 for 3 years at 7% p.a. simple interest. B borrows the same amount at simple interest of 9% for the first year, 8% for the second year, and 7% for the third year. What is the total simple interest (in ₹) paid by A and B?

• A. 45,027
• B. 47,025
• C. 42,075
• D. 40,275

Answer 1

Answer:

D. 40,275

We calculate simple interest for both A and B separately, then add.

A’s Simple Interest

$SI = \frac{P \times R \times T}{100}$

$= \frac{89500 \times 7 \times 3}{100}$

$= 89500 \times 0.21 = 18795$

So, A pays = ₹18,795

B’s Simple Interest

B has different rates each year, so calculate year-wise:

Year 1 (9%)

$89500 \times \frac{9}{100} = 8055$

Year 2 (8%)

$89500 \times \frac{8}{100} = 7160$

Year 3 (7%)

$89500 \times \frac{7}{100} = 6265$

Total for B:

$8055 + 7160 + 6265 = 21480$

So, B pays = ₹21,480

Total Interest (A + B)

$18795 + 21480 = 40275$

Final Answer: ₹40,275