Multiple choice

If the principal is increased by Rs.350, the simple interest increases by Rs.250. If the time period is doubled, the simple interest increases by 2500. Find the Compound Interest on the original principal for half of the original time period at the same rate.

  1. Rs.600

  2. Rs.800

  3. Rs.650

  4. Data Insufficient
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest SI = P*R*T/100. Changes in P and T provide equations, but there are three variables (P, R, T) and only two equations. Thus, the original principal, rate, and time cannot be uniquely determined.

AI explanation

The first statement only gives the ratio between the interest and the principal as 250 divided by 350, which equals 5 divided by 7, meaning the interest rate equals 5 divided by 7 times 100 divided by the original time period. The second statement reveals that the original simple interest is 2500 because doubling the time doubles the interest, establishing the relationship 2500 equals original principal times rate times time divided by 100. Since the individual values of the original principal and time period cannot be isolated from these proportional relationships, the exact numerical value of the compound interest cannot be determined.

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