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Read the following and answer the questions that follow. 4. A certain sum of money was lent under the following repayment scheme based on Simple Interest: 8% per annum for the initial 2 years 9.5% per annum for the next 4 years 11% per annum for the next 2 years 12% per annum after the first 8 years Find the amount which a sum of Rs. 9000 taken for 12 years becomes at the end of 12 years.
  • a)
    20,200
  • b)
    19,800
  • c)
    20,000
  • d)
    20,160
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Read the following and answer the questions that follow. 4. A certain ...
9000 + 720 + 720 + 855 + 855 + 855 + 855 + 990 
+ 990 + 1080 + 1080 + 1080 + 1080
= 9000 + 720 x 2 + 855 x 4 + 990 x 2 + 1080 x 4 = 20160
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Most Upvoted Answer
Read the following and answer the questions that follow. 4. A certain ...
Question:
Find the amount which a sum of Rs. 9000 taken for 12 years becomes at the end of 12 years.

Solution:

Given,
Principal (P) = Rs. 9000
Time (t) = 12 years

The rate of interest for the first 2 years is 8% per annum, for the next 4 years it is 9.5% per annum, for the next 2 years it is 11% per annum and after the first 8 years, it is 12% per annum.

Let us calculate the interest for each period separately.

For the first 2 years:
Rate of interest (R) = 8% per annum
Time (t) = 2 years
Simple interest (SI) = (P * R * t)/100
SI = (9000 * 8 * 2)/100 = Rs. 1440

For the next 4 years:
Rate of interest (R) = 9.5% per annum
Time (t) = 4 years
Simple interest (SI) = (P * R * t)/100
SI = (9000 * 9.5 * 4)/100 = Rs. 3420

For the next 2 years:
Rate of interest (R) = 11% per annum
Time (t) = 2 years
Simple interest (SI) = (P * R * t)/100
SI = (9000 * 11 * 2)/100 = Rs. 1980

For the next 4 years:
Rate of interest (R) = 12% per annum
Time (t) = 4 years
Simple interest (SI) = (P * R * t)/100
SI = (9000 * 12 * 4)/100 = Rs. 4320

Total interest = Rs. 11160
Amount = Principal + Total interest
Amount = Rs. 9000 + Rs. 11160
Amount = Rs. 20160

Therefore, the amount which a sum of Rs. 9000 taken for 12 years becomes at the end of 12 years is Rs. 20,160.
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Read the following and answer the questions that follow. 4. A certain sum of money was lent under the following repayment scheme based on Simple Interest: 8% per annum for the initial 2 years 9.5% per annum for the next 4 years 11% per annum for the next 2 years 12% per annum after the first 8 years Find the amount which a sum of Rs. 9000 taken for 12 years becomes at the end of 12 years.a)20,200b)19,800c)20,000d)20,160Correct answer is option 'D'. Can you explain this answer?
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