Multiple choice

Each of given questions consists of a question followed by informations in three statements. You have to study the question and the statements and decide that information in which of the statement(s) is/are necessary to answer the question. Find the total worth of Manik? Statement I: A compound interest at 10% on his principal, followed by a tax rate of 4% on the interest, give a total interest to Manik of Rs. 1500 this year. Statement II: The interest is compounded once every six months. Statement III: a sum becomes triples in 4 year .

  1. Any two

  2. I and II

  3. I and II or III

  4. Only I

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

Let principal = P. Interest for 6 months at 10% = 5% of P. After tax at 4%, net interest = 5% × 96% = 4.8%. Annual interest = 2 × 4.8%P - 4.8%P × 4% = 9.6%P - 0.192%P = 9.408%P. Given 9.408%P = 1500, P = 1500/0.09408 ≈ Rs 15,947. Statement I gives interest amount, II gives compounding frequency, and the tax rate. Statement III is not needed. I and II together are sufficient.

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