EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

Simple & Compound Interest · Question 15 of 60

Question 15

MediumOriginal question

A bank pays simple interest at 5% per annum for the first 2 years, 6% per annum for the next 3 years and 8% per annum after that. How much interest does a deposit of ₹12,000 earn in 7 years?

Options for question 15

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Total rate-years = 5×2+6×3+8×2=10+18+16=445 \times 2 + 6 \times 3 + 8 \times 2 = 10 + 18 + 16 = 44.

  2. Interest = 44% of ₹12,000 = ₹5,280.

Worth noting

₹3,360 stops after 5 years and misses the last 2 years at 8%. ₹6,720 wrongly uses 8% for all 7 years.

Concept
Simple interest when the rate changes over time
Typical time
60 s
Your time
—
The rule this testsSimple interest
Practise this chapter →

Ten questions from Simple & Compound Interest, at your own pace.

Practise this chapter →

Ten questions from Simple & Compound Interest, at your own pace.

Practise this chapterAll 60 questions in Simple & Compound InterestRevise the notes for Simple & Compound Interest