Multiple choice

Find the rate of interest? Statement I: The difference between the simple interest and compound interest for 2 years is Rs 800. Statement II: The simple interest accrued on the amount Rs 3000 is Rs 500.

  1. Statement I is sufficient to answer the question.

  2. Statement II is sufficient to answer the question.

  3. Either Statement I or statement II is sufficient to answer the question.

  4. Neither Statement I nor statement II is sufficient to answer the question.

  5. Both Statements I and II are necessary to answer the question.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement I gives the difference between CI and SI for 2 years, which equals P(r/100)² = 800. This has two unknowns (P and r), so it's insufficient alone. Statement II gives SI = 500 on principal 3000, but doesn't specify the time period, so we cannot determine r. Even together, Statement II could represent 500 = 3000 × r × t / 100 for any time t, giving multiple possible r values. For example, if t=1 year, r=16.67%; if t=2 years, r=8.33%. Both satisfy the statements with different principals. Since neither statement alone nor both together can uniquely determine the rate of interest, the answer is D.

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