Multiple choice

Directions: The question below is followed by two statements I and II. You have to decide whether the data provided in the statements is sufficient to answer the question. Read both the statements and choose the correct alternative. What is the rate of simple interest per annum? I. The amount doubles itself in 10 years with simple interest. II. The simple interest incurred in 5 years is Rs. 5000.

  1. The data in statement I alone is sufficient to answer the question, while the data in statement II alone is not sufficient to answer the question.

  2. The data in statement II alone is sufficient to answer the question, while the data in statement I alone is not sufficient to answer the question.

  3. The data in either statement I alone or statement II alone is sufficient to answer the question.

  4. The data in both statements I and II together is not sufficient to answer the question.

  5. The data in both statements I and II together is necessary to answer the question.
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A Correct answer
Explanation

Statement I: Amount doubles in 10 years, so SI = P. P = (P*R*10)/100 -> R = 10%. Statement II: SI = 5000 in 5 years. Without the principal, R cannot be determined. Thus, I alone is sufficient.

AI explanation

From statement I, if a sum doubles itself in 10 years, the simple interest earned equals the principal, meaning Principal = (Principal * Rate * 10) / 100, which simplifies to Rate = 10%. Statement II only provides the total interest for 5 years as Rs. 5000 without providing the principal sum, so it is impossible to find the rate from this statement alone. Therefore, statement I alone is sufficient to answer the question, while statement II alone is not.

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