Multiple choice

Directions: This data sufficiency problem consists of a question and two statements labelled (1) and (2). You have to decide whether the data given in the statements is sufficient for answering the question. (You should use the data and your knowledge of mathematics to choose between the possible answer.) What is the rate of p.c.p.a. on an amount of Rs. 15,000 deposited in a bank? (1) The simple interest for two years is Rs. 3,600. (2) The difference between the simple interest and compound interest is Rs. 216.

  1. Statement (1) alone is sufficient, but statement (2) alone is not sufficient.

  2. Statement (2) alone is sufficient, but statement (1) alone is not sufficient.

  3. Both statements (1) and (2) together are sufficient, but neither statement alone is sufficient.

  4. Each statement alone is sufficient.

  5. Statements (1) and (2) together are not sufficient.
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A Correct answer
AI explanation

From statement (1), we use the simple interest formula Rate = (100 * Simple Interest) / (Principal * Time), substituting the values to get Rate = (100 * 3600) / (15000 * 2). This calculates to a rate of 12% per annum, making statement (1) sufficient. Statement (2) only provides the difference between compound interest and simple interest for two years as Rs. 216, but because it lacks the total amount or the interest figures, this data cannot be used to find the principal or the rate independently. Therefore, statement (1) alone is sufficient, but statement (2) alone is not.

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