Multiple choice

Directions: Read the given information and choose the correct answer. What is the rate of interest? Statement I: The initial amount doubles in 2 years at simple interest. Statement II: The simple interest at the end of 5 years is Rs. 2,000.

  1. I only

  2. II only

  3. III only

  4. Either I or II

  5. Either II or III
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I: P doubles in 2 years at SI means SI = P, so P = P*R*2/100 => R = 50%. Statement II: SI = 2000 in 5 years, but P is unknown, so R cannot be found. Only I is sufficient.

AI explanation

Statement I alone is sufficient because if a sum doubles in 2 years at simple interest, the interest earned equals the principal, so using the formula Rate equals (100 multiplied by Interest) divided by (Principal multiplied by Time), we get 100% divided by 2, resulting in a 50% rate. Statement II only provides the simple interest amount without giving the principal sum, so the rate cannot be determined from it; therefore, only statement I is sufficient.

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