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A man borrowed a certain sum of money at the rate of 6 % per annum for the first two years, 9% per annum for the next three years, and 14% per annum for the period beyond 5 years. If he pays a total interest of Rs. 22,800 at the end of 9 years, find the amount he borrowed.

Question

A man borrowed a certain sum of money at the rate of 6 % per annum for the first two years, 9% per annum for the next three years, and 14% per annum for the period beyond 5 years. If he pays a total interest of Rs. 22,800 at the end of 9 years, find the amount he borrowed.

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Solution

To solve this problem, we need to break it down into three parts, each representing a different interest rate for a different period of time.

  1. For the first two years, the interest rate is 6% per annum. So, the total interest for the first two years is 2*6% of the principal (let's denote the principal as P). This gives us 0.12P.

  2. For the next three years, the interest rate is 9% per annum. So, the total interest for these three years is 3*9% of the principal, which gives us 0.27P.

  3. For the period beyond 5 years, which is 4 years in this case (since the total time is 9 years), the interest rate is 14% per annum. So, the total interest for these four years is 4*14% of the principal, which gives us 0.56P.

The total interest paid at the end of 9 years is the sum of the interests for these three periods, which is Rs. 22,800. So, we have the equation:

0.12P + 0.27P + 0.56P = 22,800

Solving this equation will give us the value of P, which is the amount the man borrowed.

Let's add the left side of the equation:

0.95P = 22,800

Now, divide both sides of the equation by 0.95 to solve for P:

P = 22,800 / 0.95

P = Rs. 24,000

So, the man borrowed Rs. 24,000.

This problem has been solved

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