Multiple choice

What is the rate of interest? (1) If the principle becomes eight times of itself in five years. (2) If the ratio between the interest and the principle is 3 : 10

  1. If statement I alone is sufficient but statement II alone is not sufficient.

  2. If statement II alone is sufficient but statement I alone is not sufficient.

  3. If each statement alone (either I or II) is sufficient.

  4. If statement I and II together are not sufficient.

  5. If both statements together are sufficient, but neither statement alone is sufficient.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I: Principal becomes 8 times in 5 years. For simple interest: P + SI = 8P, so SI = 7P over 5 years, Rate = (7P/5P) × 100 = 140% per 5 years or 28% per annum. For compound interest: P(1 + r/100)⁵ = 8P, so (1 + r/100)⁵ = 8, giving r ≈ 51.6%. Either way, statement I alone is sufficient. Statement II: Interest/Principal = 3/10 gives SI = 0.3P, but without time period we cannot find rate. Insufficient. Option A is correct.

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