Multiple choice

Directions: The problem contains a question and two statements giving certain data. You have to select the correct answer from (1) to (5), depending on the sufficiency of the data given in the statements to answer the question. Mark your answer as What is the total interest p.a. per rupee after one year? (A) 40% of the sum is deposited at 20% p.a. simple interest. (B) Remaining 60% of the sum is deposited at 12% p.a. compound interest

  1. if statement (A) alone is sufficient to answer the question and statement (B) alone is not sufficient to answer the question

  2. if statement (B) atone is sufficient to answer the question and statement (A) alone is not sufficient to answer the question

  3. if statements (A) and (B) together are sufficient to answer the question, but neither statement alone is sufficient

  4. if each statement alone is sufficient to answer the question

  5. if both statements (A) and (B) together are not sufficient to answer the question and additional data specific to the problem is needed
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement (A) gives the interest on 40% of the sum. Statement (B) gives the interest on the remaining 60%. Together, they provide the total interest for the whole sum. Neither is sufficient alone because they only cover parts of the total sum.

AI explanation

Statement A only tells us that 40% of the money earns 0.40 * 20% = 8% interest, but without knowing the rate of the remaining 60%, it is insufficient. Statement B tells us the remaining 60% is invested at 12% compound interest, which for one year is equivalent to 12% simple interest, but it lacks the rate for the first 40%. Combining both, the total interest per rupee is 0.08 + (0.60 * 0.12) = 0.08 + 0.072 = 0.152, meaning both statements together are sufficient.

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