What will be the compound interest on \$6,000 after 3 years? (1) There was a 30% increase in the amount in 6 years at simple interest. (2) The amount of compound interest is less than \$50,000.
Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
EACH statement ALONE is sufficient.
Statements (1) and (2) TOGETHER are NOT sufficient.
Statement 1 gives the rate of simple interest (30% in 6 years = 5% p.a.). With the principal and rate, CI can be calculated. Statement 2 is just a bound and does not define the rate or principal.
To find the compound interest we need the rate of interest, which we can get from statement (1) using the simple interest formula. A 30% increase in 6 years means the interest is 30% of the principal, so 30 equals R times 6, giving an annual simple interest rate of 5%. Using this 5% rate in the compound interest formula, the amount after 3 years is 6000 times 1.05 cubed, which allows us to calculate the exact interest. Statement (2) only says the interest is less than 50000, which does not help find the exact value. Statement (1) alone is sufficient, but statement (2) alone is not sufficient.