Multiple choice

Directions: In this question, you have to find out which of the following statements is/are sufficient for determining the answer of the given question. Find the sum. I. The sum is lent for 4 years. II. The sum is calculated based on SI. III. Interest earned at the sum is Rs. 56 more, if the rate of interest is increased by 2%.

  1. Only I and II

  2. Only I and III

  3. Only II and either I or III

  4. All I, II and III

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To find the sum (Principal P), we need the relationship between interest, rate, and time. Statement III provides the interest difference when the rate changes, which allows us to set up an equation: (P * (R+2) * 4)/100 - (P * R * 4)/100 = 56. This simplifies to 8P/100 = 56, allowing us to solve for P. All three statements are necessary to define the parameters.

AI explanation

To find the principal sum, we use the simple interest formula where Principal equals (Simple Interest times 100) divided by (Rate times Time). Statement I provides the time of 4 years and statement II confirms we must use the simple interest formula. Statement III allows us to find the principal by setting up the equation (P times 2 times 4) divided by 100 equals 56, since the Rs. 56 difference is the extra interest generated by the 2% rate increase over the 4-year period. Solving this gives P equals Rs. 700, meaning all three statements are required to determine the answer.

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