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. The compound interest on a sum of Rs. 8000 is Rs. 2648. Find the rate of interest. Statement I: The simple interest on the same sum at the same rate is Rs. 2400. Statement II: Compound interest is compounded every four months. Statement III: The sum doubles itself in 25 years at the rate of 4% per annum.

  1. Only I and III

  2. All statements together are sufficient

  3. Only I and II

  4. (I and II) or III

  5. All statements together are not sufficient
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

For CI of Rs. 2648 on Rs. 8000, total = 10648. Statement I (SI = 2400) with Statement II (quarterly compounding) are internally consistent: quarterly rate 5% gives CI ~2648 in 2 years and SI 2400. Statement III (4% rate, doubles in 25 years) is about simple doubling but doesn't help find the rate in our problem. Even I+II don't uniquely determine time. All statements together are insufficient.

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