Multiple choice

Each of the questions below consists of a question and some statements given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. A person borrowed some money at compound interest for 2 years. What will be the amount required to return after 2 years? Statement I: If the amount was borrowed at simple interest, then after 5 years Rs 600 was required to pay as simple interest. Statement II: The rate of interest is 6% per annum Statement III: The sum of money borrowed is 10 times the amount required to be paid as simple interest after 2 years.

  1. II and I or III

  2. All three together are sufficient

  3. II and III together

  4. I and II together

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

Statement II gives rate = 6%. Statement I: If borrowed at simple interest, SI after 5 years = Rs 600. Using SI = P×R×T/100, we get 600 = P×6×5/100, so P = Rs 2000. For compound interest at 6% for 2 years: A = P(1 + R/100)² = 2000(1.06)² = Rs 2247.20. Statements I and II together are sufficient. Statement III relates P to SI after 2 years but without the rate, is insufficient alone. Option D (I and II together) is correct.

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