Multiple choice

A person lent some amount of money at compound interest. Find the rate of interest of the sum of money. A- The value of the amount after 4 years is 24883.2 rupees. B- The money lender would get the sum of 17280 rupees after two years.

  1. if the Statement ‘A’ alone is sufficient to answer the question but the Statement ‘B’ alone is not sufficient

  2. if the Statement ‘B’ alone is sufficient to answer the question but the Statement ‘A’ alone is not sufficient

  3. if both Statement ‘A’ and ‘B’ together are needed to answer the question

  4. if either the Statement ‘A’ alone or Statement ‘B’ alone is sufficient to answer the question

  5. If you cannot get the answer from both the Statements together
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let P be principal and r be rate. From A: P(1+r)^4 = 24883.2. From B: P(1+r)^2 = 17280. Dividing gives (1+r)^2 = 24883.2/17280 = 1.44, so 1+r = 1.2 and r = 0.2 = 20%. Neither statement alone gives both unknowns, but together they do.

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