Bharat borrowed Rs 180 000 on a condition that he had to pay 7 5 interest every year He also agreed ...........

Quantitative Aptitude ( CCS) Simple Interest

Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?

10 years

12 years

13 years

14 years

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Explanation:

x = interest paid at 7.5%
(21-x) years interest paid at 7%
((180000*x*7.5)/100) + ((180000*7*(21-x))/100) = 270900
x = 7
21 – 7 = 14 years he paid at the reduced interest rate.