Multiple choice

Direction: The question below consists of a question and two statements numbered I and II are given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. Read both the statements and give answer. What is the rate of interest? I. Simple interest accured on an amount of Rs.215000 in two years is less than the compound interest for the same period by Rs.250 II. Simple interest accured in 10 years is equal to the principal.

  1. Data in Statement I along are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question.

  2. Data in Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question.

  3. Data in Statement I alone or in statement II alone are sufficient to answer the question.

  4. Data in both the statements I and II are not sufficient to answer the question.

  5. Data in both the Statements I and II together are necessary to answer the question.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement I: CI - SI = P(R/100)^2. 250 = 215000 * (R/100)^2. This allows solving for R. Statement II: SI = P*R*T/100. P = P*R*10/100. This simplifies to 1 = R/10, so R = 10%. Both statements are independently sufficient.

AI explanation

In statement I, the difference between compound interest and simple interest for two years is given by P multiplied by R squared, divided by 10000. Substituting the values 215000 and 250 allows you to solve for R, making statement I alone sufficient. In statement II, simple interest equals the principal in 10 years, so using the formula P multiplied by R multiplied by 10 divided by 100 equals P, you can cancel P and solve for R as 10 percent, making statement II alone also sufficient. Therefore, data in statement I alone or in statement II alone are sufficient to answer the question.

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