Q.

An N.G.O. wants to invest ₹300000 in a bond which pays  5% annual interest first year, 6% interest second year, 7% interest third year and so on. The interest received per year is to be utilized for the education of poor people. If the investment is done for 10 years find the total interest received by N.G.O.


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a

285000

b

286000

c

287000

d

288000 

answer is A.

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Detailed Solution

Concept-
Determine the annual simple interest rate. To get the answer, add the interests you've already determined. Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.
We know that simple interest formula, https://lh4.googleusercontent.com/o7Ahbc6MQaWSpEF9PpCAFBt3NeIXrvmggFLeF1l3jJv_zMlnnD6vqrT9yZb79NdgdueM52tMQnxvqGM_EXQAm9m5qtpJUQw2UeL7YMWaBiJrjJ0lypFpgOoteHJLZxUVOyqHgbgwLbko2_wmOwCLBAIn first year the interest is ,
 https://lh6.googleusercontent.com/700OkHMkvAJ8ytAdRuzQ5kFm8K3TEsDnmxz0merp1Mjocz5bQp8969k1IAhkli5DsojXIs0BRLKgXxwf449AtpieSf7Oh_LShamtCbpblm-SnW8VeN9NCKw9oJSkbzvUfMyjeCnKMXj3071JT9uq2ATotal interest https://lh3.googleusercontent.com/hvu6CysRVCxrAoV-e8P1_eIACytXBEvw_tYwAHgGVWLUwXLIMP8f4zCw0yBHkojnSbloId-T39vPEeDXeGwQxUslk_aTi67oGq3eK7n7Zwo0XCE2EdCzQLDi8r_W_XLaCvoee8CGw4nIFa5_JDxVCgWe'll apply the arithmetic progression's sum of the first n terms formula.
https://lh5.googleusercontent.com/61SPS0tfx5SoI2QYyniTXB50bXte1Ljc31q7BmWwGx7HFakAe3ftvD8yTv9AMLlfPlo6WJbkZtuDOk6roW-DNVc1zR976iMEK7rb54LilTFPiirpwMqQjQnROGUqB_Ql-h06-MsFxZgGr6W4mmToHAThus the total interest = https://lh3.googleusercontent.com/yZyJSiZGl4niw_WivBxdoJwJzWWAzlXRP6XOt5Ee5imu4z1M7vol54BpEjRRV79kFbbfi_os_71m1L_oIZzWv0-LNbCaiR6TMp1knDfSF6M3Hnjpkr69RZbZm2zKhiaXwAWvjnNAJAGMjpjTHeLq1wHence, the correct answer is option 1) 285000
 
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