Multiple choice

Directions: The question below is followed by two statements numbered I and II. You have to decide whether the data provided in the statements is sufficient to answer the question. What is the per cent rate of simple interest per annum? I. The amount doubles in 6 years with the interest rate. II. The interest amount is Rs. 16,00 for the first year.

  1. Data in statement I alone is sufficient to answer the question, while the data in statement II alone is not sufficient to answer the question.

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

  3. Data either in statement I alone or in statement II alone is sufficient to answer the question.

  4. Data given in both the statements I and II together is not sufficient to answer the question.

  5. Data in both the statements I and II together is sufficient to answer the question.
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A Correct answer
Explanation

Statement I: Amount doubles in 6 years (A=2P). Simple interest formula: I = P*r*t/100. P = P*r*6/100 => 1 = 6r/100 => r = 100/6 = 16.67%. This is sufficient. Statement II: Interest for 1st year is 1600. Without the principal, we cannot find the rate. Thus, I alone is sufficient.

AI explanation

From statement I, if a sum doubles in 6 years, the interest earned equals the principal, meaning R = (100 * Principal) / (Principal * 6), which gives a rate of 16.66%. Statement II provides the first year interest but lacks the principal amount to calculate the rate. Thus, the data in statement I alone is sufficient to answer the question, while the data in statement II alone is not.

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