Multiple choice

Directions: The following question is accompanied by statements A, B and C. You have to determine which of the statements is/are sufficient/necessary to answer the question. Find the principle amount that Romi will have to pay. A. There is 65% increase in an amount in 5 years at simple interest. B. The rate of interest before 65% increase was 10% p.a. C. After 3 years, compound interest at the same rate will be Rs. 3972.

  1. Only C is sufficient.

  2. A and C together are sufficient.

  3. All together are sufficient.

  4. Either B or C is sufficient.

  5. Only A is sufficient.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement A gives the simple interest rate as 65%/5 = 13% per year. Using this rate in statement C, the compound interest for 3 years determines the principal amount, so A and C together are sufficient.

AI explanation

Statement A establishes that the interest equals 65% of the principal over 5 years, but lacks the actual monetary value of the principal or interest. Statement C provides the actual monetary value for the compound interest over 3 years but introduces a new unknown rate, preventing us from finding the principal independently. Combining A and C allows us to first determine the rate of interest from A as 65 divided by 5 equals 13% per annum, and then use this 13% rate in statement C to calculate the principal, making them together sufficient.

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