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 principal amount? Statement I: The difference between Compound Interest and Simple Interest for 2 years is 300 Statement II: Compound Interest for 3 years at the rate of 10% is 3310. Statement III: The sum becomes double in 32 years at Compound Interest.

  1. Only I and II

  2. Only II

  3. All are necessary

  4. All together are not sufficient

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

Statement II alone is sufficient. CI for 3 years at 10% is 3310. Using CI formula: CI = P[(1 + r/100)^n - 1] = P[(1.1)^3 - 1] = P[1.331 - 1] = 0.331P. Solving: 0.331P = 3310, so P = 10,000. Statement I gives only the CI-SI difference, not enough. Statement III gives doubling time but not rate or principal.

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