Multiple choice

What is the compound interest earned at the end of $3$ years? I. Simple interest earned on that amount at the same rate and for the same period is $Rs. 4500$. II. The rate of interest is $10\ p.c.p.a.$ III. Compound interest for $3$ years is more than the simple interest for that period by $Rs. 465$.

  1. I and II only

  2. II and III only

  3. I and III only

  4. Either II or III only

  5. Any two of the three
Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

To find the compound interest, we need the principal, rate, and time, or direct information about the compound interest itself. Statement I gives the simple interest as Rs. 4500, and Statement II provides the rate as 10% and the time as 3 years, so using the simple interest formula, I and II together yield the principal. Alternatively, Statement III states the compound interest exceeds the simple interest by Rs. 465, so using III with I allows us to calculate the compound interest directly by adding 465 to the simple interest of 4500. Therefore, the compound interest can be found using I and II, or I and III.

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