What is the rate of interest p.c.p.a.? I. The amount becomes Rs 11025 at compound interest after 2 years. II. The same amount with simple interest becomes Rs 11000 after 2 years. III. The amount invested is Rs 10000.
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Only II and III
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Any two
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Only I and III
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Any one
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None of these
B
Correct answer
Explanation
We need to find the rate of interest per annum. Statement I: Amount after 2 years at CI is Rs 11025. Statement II: Amount after 2 years at SI is Rs 11000. Statement III: Principal is Rs 10000. Using I+III: 11025 = 10000(1 + r/100)^2, we can find r. Using II+III: 11000 = 10000 + 10000×r×2/100, giving r = 5%. Using I+II: The difference between CI and SI for 2 years on same principal gives the rate. Any two statements are sufficient to determine r.