ICICI lent Rs. 1 lakh to captain Ram Singh at 6% per annum of simple interest for 10 years period. Meanwhile ICICI offered a discount in rate of interest for armed forces. Thus the rate of interest ICICI decreased to 4%. In this way Ram Singh had to pay total amount 1.48 lakh. After how many year Ram Singh got the discount in rate of interest?

A. 3 years

B. 4 years

C. 6 years

D. 5 years

Solution(By Examveda Team)

Interest paid by Ram Singh = 148000 - 100000 = Rs. 48000.

Let discount was given after x years.

So,

48000 = (100000/100) * {6x + 4*(10-x)}

On Solving,

x = 4 years.