Multiple choice

Directions: The problem contains a question and two statements giving certain data. You have to select the correct answer from the given options depending on the sufficiency of the data given in the statements to answer the question. At simple interest, what sum earns an interest of Rs. 5000 in 5 years? (A) The same sum earns an interest of Rs. 10,000 in 10 years. (B) The rate of interest is 5% p.a.

  1. Statement (A) alone is sufficient to answer the question and statement (B) alone is not sufficient to answer the question.

  2. Statement (B) alone is sufficient to answer the question and statement (A) alone is not sufficient to answer the question.

  3. Statements (A) and (B) together are sufficient to answer the question, but neither statement alone is sufficient.

  4. Each statement alone is sufficient to answer the question.

  5. Both statements (A) and (B) together are not sufficient to answer the question and additional data specific to the problem is needed.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: SI = (P * R * T) / 100. We have SI=5000, T=5. 5000 = (P * R * 5) / 100 => P * R = 100,000. Statement (A) says 10000 = (P * R * 10) / 100 => P * R = 100,000 (redundant). Statement (B) says R = 5%. With R=5, P * 5 = 100,000 => P = 20,000. Thus, (B) is sufficient.

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