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 to answer the question. What is the rate at which interest is received by Shahrukh in investment scheme X? A. Amount received by Shahrukh in investment scheme X is 15% of the principal amount at the end of 2 years, compounded annually. B. If Shahrukh had invested Rs. 5000 in investment scheme X, he would have received Rs. 6500 after three years at simple interest. C. Shahrukh invests Rs. 2500 in investment scheme.

  1. Only A is sufficient.

  2. Only B is sufficient.

  3. Only C is sufficient.

  4. Either A or B alone is sufficient.

  5. B and C together are sufficient.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement A gives the rate directly (compounded annually, 15% in 2 years means (1+r)^2 = 1.15). Statement B allows calculating the rate using simple interest (6500 = 5000 + 5000*r*3). Both are sufficient independently.

AI explanation

Statement A provides the compound interest formula as Amount equals Principal multiplied by (1 plus Rate divided by 100) squared, and since the amount is 1.15 times the principal, we solve for Rate. Statement B provides the principal of Rs. 5000, an amount of Rs. 6500, and a time of 3 years for a simple interest calculation, allowing us to find the rate using the simple interest formula. Since C only provides a principal amount, it is insufficient. Therefore, either A or B alone provides enough information to determine the interest rate.

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