Multiple choice

The questions given below contain three statements giving certain data. You have to decide whether the data given in the statements are sufficient for answering the question? What is the rate of interest per year? I. C.I. is Rs. 94 after 2 years. II. S.I. is Rs. 83 on the same sum after two years. III. Sum is Rs. 440

  1. From statement I and III

  2. From statement II and III

  3. From statement I and II

  4. From statement I and II or statement II and III or statement I and III

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

Any two of the three statements are sufficient. Using I and III: CI = P(1+r/100)^2 - P = 94, with P=440 gives r. Using II and III: SI = (P×r×2)/100 = 83, with P=440 gives r. Using I and II: CI - SI = 94 - 83 = 11, and using the relationship between CI and SI for 2 years, we can find r. All combinations work.

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