Multiple choice

The questions given below contain two statements giving certain data. You have to decide whether the data given in the statements are sufficient for answering the question? Mark answer- What is the rate of interest? I. The amount doubles itself in 8 years. II. C.I. earned on a certain amount in 2 years is more than the simple interest for the same period by Rs. 345

  1. If statement I alone is sufficient but statement II alone is not sufficient.

  2. If statement II alone is sufficient but statement I alone is not sufficient.

  3. If each statement alone (either I or II) is sufficient.

  4. If statement I and II together are not sufficient.

  5. If both statements together are sufficient, but neither statement alone is sufficient.
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A Correct answer
Explanation

Statement I alone is sufficient. If amount doubles in 8 years under simple interest, then interest = principal in 8 years. Rate = (100 * Interest) / (Principal * Time) = (100 * P) / (P * 8) = 100/8 = 12.5% per annum. Statement II is not sufficient because it only tells us the difference between compound and simple interest (Rs. 345) over 2 years, but we need the principal amount to find the rate.

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