Multiple choice

Directions: In the following problem, a question is followed by two statements (A) and (B). Read the statements carefully and determine which of the given statements is/are sufficient/necessary to answer the question. The value of a piece of land is increasing every year by 10%, starting from 1990. What is its value in 1996? (A) Value of the land in 1990 was Rs. 1 lakh. (B) Value of the land in 1994 was Rs. 1,46,410.

  1. Statement (A) alone is sufficient but statement (B) alone is not.

  2. Statement (B) alone is sufficient but statement (A) alone is not.

  3. Both statements (A) and (B) together are sufficient but none of them alone is sufficient.

  4. Both statements are sufficient independently.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement (A) gives the base value, allowing calculation of the value in 1996 using compound interest. Statement (B) gives the value in 1994, which can be used to find the value in 1996 by multiplying by 1.1 twice. Both statements are sufficient independently.

AI explanation

Using the compound interest formula, the final value is calculated as the initial value multiplied by (1 + r/100) raised to the time period. Statement A gives the 1990 principal as Rs. 1 lakh, so the 1996 value is 1,00,000 multiplied by (1.10) raised to 6, which gives a definite answer. Statement B gives the 1994 value as Rs. 1,46,410, so the 1996 value is 1,46,410 multiplied by (1.10) raised to 2, which also yields a unique result. Both statements independently provide the necessary data to compute the final land value.

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