Multiple choice

How much money did Yami borrow?Statement I: If borrowed for 6 years at 6% rate of interest per annum, she has to give double interest as earlier. Statement II: If the rate of interest per annum increases from 6% to 8% then she could borrow 25% less to give same amount of interest.A) If the data in statement I alone is sufficient to answer the question.

  1. A

  2. B

  3. C

  4. D

  5. E
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement I: I = P*R*T/100. Double interest means 2I = P*6*6/100. This is one equation with two variables (P and I). Statement II: 0.06*P*T = 0.08*(0.75P)*T. This is a tautology (0.06 = 0.06) and does not help find P. Both together are insufficient.

AI explanation

To find the borrowed money, we need to establish the values for both the time period and the original principal. Statement I provides a relationship between an unknown original time, an unknown principal, and the new 6-year time frame, but introduces a variable 'earlier interest' that leaves multiple unknowns unsolvable. Statement II establishes a relationship between the principal, the change in rate from 6% to 8%, and a 25% reduction in the principal, but this equation alone still contains multiple unknown variables without a specified time period. Because neither statement provides concrete values for all the necessary variables and they cannot be combined to solve for a unique principal, the data given in both statements together are not sufficient to answer the question.

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