Multiple choice

What is the rate of interest p.c.p.a.? (I) Difference between compound interest and simple interest for 2 years is Rs. 125. (II) The amount doubles itself in 8 years on simple interest. (III) The amount invested is Rs. 12500.

  1. Only I

  2. Only I and III

  3. Either only II or I and III

  4. Either I and II or I and III

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For interest rate problems: Statement II alone gives rate from doubling time (Simple Interest: if amount doubles in 8 years, rate = 100/8 = 12.5%). Statement I gives CI-SI difference formula involving rate and principal. Statement III gives principal. So either only II suffices, or I+III together (principal from III, then rate from CI-SI formula in I). This matches option C.

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