Multiple choice

In each of these questions, one question is given followed by data in three statements I, II and III: You have to study the question and the data in statements and decide question can be answered with data in which of the statements and mark your answer accordingly. What is the rate of interest per annum? I. Difference between the compound interest and simple interest earned in two years on the amount invested is Rs 100. II. The amount becomes Rs 19500 in three years on simple interest. III. Simple interest occurred in two years on the same amount at the same rate of interest is Rs 3000.

  1. I and II

  2. I and III

  3. II and III

  4. I and either II or III

  5. Any two
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

For any two statements, you can solve for rate of interest. Statement I gives P*r²/2 = 100 (difference between CI and SI for 2 years). Statement II gives P(1+3r) = 19500. Statement III gives P*2*r = 3000. Using I and III: From III, P*r = 1500, so P = 1500/r. Substitute in I: (1500/r)*r²/2 = 100 → 750r = 100 → r = 2/15 = 13.33%. Similarly, using I and II or II and III also gives the same rate. Thus any two statements are sufficient.

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