Anil lent a sum of Rs. 5000 on simple interest for 10 years in such a way that the rate of interest is 6% p.a. for the first 2 years, 8% p.a. for the next 2 years and 10% p.a. beyond 4 years. How much interest (in Rs.) will he earn at the end of 10 years.
Explanation:
6% for 2 years: Interest accumulated = 5000×6×2100 = Rs. 600
8% for 2 years: Interest accumulated = 5000×8×2100 = Rs. 800
10% for 6 years: Interest accumulated = 5000×10×6100 = Rs. 3000
Total interest accumulated = 600 + 800 + 3000 = Rs. 4400
Hence, option (b).
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