Multiple choice

The question below is followed by three statements I, II and III. You have to determine whether the data given is sufficient for answering the question. You should use the data and your knowledge of mathematics to choose the best possible answer. Find the total amount paid by the person to the bank. Statement I∶ A person took the loan of Rs. 7000 from the bank at rate of 5% per annum simple interest. Statement II∶ He wants to repay the loan in 5 years in some installments. Statement III∶ At the end of 3 years, he paid Rs. 3000 and cleared the dues after 2 more years.

  1. All the statements are required to answer the question.

  2. Any two statements are sufficient to answer the question.

  3. Either statement I or II and statement III are required to answer the question.

  4. Statement I and III together are sufficient to answer the question.

  5. Statement II and III together are sufficient to answer the question.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement I provides the principal (Rs. 7000) and rate (5% per annum). Statement III tells us after 3 years he paid Rs. 3000 and cleared dues after 2 more years. Using I and III together: After 3 years, amount due = 7000 + (7000 × 0.05 × 3) = Rs. 8050. After paying Rs. 3000, remaining principal is Rs. 5050. This accumulates interest for 2 more years: 5050 × 0.05 × 2 = Rs. 505. Total paid = 3000 + 5050 + 505 = Rs. 8555. Statement II alone is insufficient as it only tells us he wants to repay in installments without specifics.

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