A fund is split among three deposits in the ratio 2:3:5. The deposits earn simple interest for 2 years at annual rates of 6%, 8%, and 10%, respectively. If the combined simple interest is Rs. 5,160, what was the original amount of the fund?
Correct Answer :
Rs. 30,000
Solution :
The correct option is Rs. 30,000.
Step 1: Understand the ratio and define variables.
The total fund is divided into three deposits in the ratio 2 : 3 : 5.
Let the common multiplier be .
Therefore, the amounts in the three deposits are:
First deposit () =
Second deposit () =
Third deposit () =
The total original fund is equal to the sum of all three deposits:
Step 2: Calculate simple interest for each deposit.
The formula for simple interest (SI) is:
where is the principal amount, is the annual rate of interest, and is the time period in years.
Given that the time period years for all deposits:
For the first deposit (, rate ):
For the second deposit (, rate ):
For the third deposit (, rate ):
Step 3: Set up the equation using total interest.
The combined simple interest from all three deposits is Rs. 5,160.
Step 4: Solve for and calculate the original fund.
Now, substitute the value of back into the total fund expression ():
Thus, the original amount of the fund was Rs. 30,000.
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