Mary invested a sum of Rs. 12400 in simple interest for 4 years. The rate of interest is managed in such a way that the interest earned by… — Answer & Discussion

Mary invested a sum of Rs. 12400 in simple interest for 4 years. The rate of interest is managed in such a way that the interest earned by Mary is Rs. 620 more than the previous year. If the rate of interest is 17% per annum for second year of investment, then what is the total interest earned by Mary? (in Rs)

A9178
B9672
C10000
D9828

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Discussion 1

CCommunity07 Jul 2019

The rate of interest is managed in such a way that the interest earned by Mary is Rs. 620 more than the previous year.

Rate of interest in second year is 17%.

We know, Simple interest = (Principal × Rate × Time)/100

So, interest earned in second year = (12400 × 17 × 1)/100 = 2108

⇒ Interest earned in first year = 2108 – 620 = 1488

⇒ Interest earned in third year = 2108 + 620 = 2728

⇒ Interest earned in fourth year = 2728 + 620 = 3348

∴ Total interest earned = 2108 + 1488 + 2728 + 3348 = Rs. 9672