A man invested 1/3 of his retirement gratuity at 6% simple interest: 1/4 of his gratuity at 7% and the rest at 8% simple interest. If his annual return on these investments is 7012)5, find the total amount of gratuity invested by the man.
Correct Answer :
99,000
Solution :
The correct option is 99,000.
Step-by-step derivation:
Let the total amount of retirement gratuity invested by the man be represented by .
According to the problem, the gratuity is divided into three parts and invested at different simple interest rates:
1. First part: of the gratuity is invested at 6% simple interest.
2. Second part: of the gratuity is invested at 7% simple interest.
3. Third part: The remaining ("rest") of the gratuity is invested at 8% simple interest.
First, let us calculate the fraction of the gratuity that makes up the third part (the rest):
To add the fractions, find a common denominator, which is 12:
The annual return on these investments is given as 7,012.5 (where "7012)5" is a typographical error for 7,012.50). Using the formula for simple interest for 1 year, , we can write the equation for total annual interest as:
Simplify each term:
Express all fractions with a common denominator of 1200:
Combine the numerators:
Simplify the numerator:
Solve for :
Multiply the values on the right side:
Divide by 85 to find the total investment:
Thus, the total amount of retirement gratuity invested by the man is 99,000.
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