Simple Interest — The interest earned at 5%, 6%, and 8% in three consecutive years totals ₹ 760. Find the principal.

Difficulty: Medium

Correct Answer: ₹ 4000

Explanation:


Introduction / Context:
Here the rate changes each year but simple interest is computed independently each year on the same principal, then summed.



Given Data / Assumptions:

  • Year 1 rate = 5%.
  • Year 2 rate = 6%.
  • Year 3 rate = 8%.
  • Total simple interest over 3 years = ₹ 760.
  • Let principal be P.


Concept / Approach:
Total SI = P * (0.05 + 0.06 + 0.08) = P * 0.19.



Step-by-Step Solution:
P * 0.19 = 760.P = 760 / 0.19.P = ₹ 4000.



Verification / Alternative check:
Check per year interest: 5% of 4000 = 200; 6% = 240; 8% = 320; sum = 760.



Why Other Options Are Wrong:
₹ 4600, ₹ 3600, ₹ 3200, ₹ 5000 do not satisfy 0.19 * P = 760.



Common Pitfalls:
Adding percentages incorrectly or treating it as compound interest across years.



Final Answer:
₹ 4000

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