Multiple choice

On what amount the simple interest is Rs. 500? I. The compound interest on the same sum for two years is 484. II. Rate of interest is 5%. III. The difference between compound interest and simple interest on that sum is Rs. 41.

  1. Only I

  2. Only II

  3. Only I and II

  4. All are not sufficient

  5. None of these

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

From statement II: Rate = 5%. From statement I: CI for 2 years = 484. Using CI formula A = P(1 + r/100)^t, we get P(1.05)^2 - P = 484, giving P = 4400. SI on 4400 at 5% = (4400 × 5 × 1)/100 = 220, not 500. From statement III: CI - SI = 41 for 2 years at 5%. The difference formula is P(r/100)^2 = 41, giving P = 16400. SI on 16400 at 5% for 1 year = (16400 × 5 × 1)/100 = 820, not 500. The question asks for SI = 500, but all statements lead to different principals. With all three statements, we can solve but none give SI = 500, so the answer is 'None of these'.