Multiple choice

In each of the following questions, a question is followed by three statements numbered I, II and III. Read all the statements and find which information is/are necessary to answer. For what time the simple interest is Rs. 500? I. The compound interest on the same sum for two years is 484. II. Rate of interest is 5%. III. The difference between compound interest and simple interest on that sum for 2 years is Rs. 41.

  1. All three together are sufficient

  2. I and (II or III)

  3. I and III together

  4. II and (I or III)

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

Statement II: Rate = 5%. Statement III: CI - SI for 2 years = Rs. 41. For rate r, the difference is P*r²/100². So P*(5)²/10000 = 41, giving P = 16400. With P and rate, time for SI=500 is t = 500*100/(16400*5) = 50000/82000 = 50/82 years. Statement I gives CI for 2 years = 484, which can verify P but II+III or II+I are sufficient. Option D (II and I or III) is correct.

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