Multiple choice

Passage

Directions: The question given below is followed by three statements (A), (B) and (C). You have to determine which statement(s) is/are sufficient/necessary to answer the question. Mark your answer as per these codes: (a) (A) and (B) together are sufficient. (b) Only (B) is sufficient. (c) Any of the three is sufficient. (d) Only (C) is sufficient. (e) All are necessary to answer the given question.

Shivani deposited a sum of money on simple interest at 10% rate of interest for 4 years and also deposited the same sum of money on compound interest for two years. At what rate did she deposit the money on compound interest? (A) Shivani got 4000 as simple interest on money she deposited after one year. (B) The sum of money she deposited amounted to Rs. 44,100 in 2 years compounded annually. (C) The rate of interest on compound interest was less than the rate of interest on simple interest.

  1. a

  2. b

  3. c

  4. d

  5. e
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To find the compound interest rate, we need the principal and the amount. Statement (B) provides the amount after 2 years. Statement (A) provides the simple interest for one year, which allows us to find the principal (since SI = P*r*t/100, 4000 = P*0.10*1). With P and the amount after 2 years, we can calculate the compound interest rate. Statement (C) is supplementary.

AI explanation

From statement A, using the simple interest formula allows us to find the principal because the interest for 4 years at 10% is 4000, meaning the interest for 1 year is 1000 and the principal is 10000. From statement B, we have the formula 44100 = 10000 * (1 + R/100)^2, which gives (1 + R/100)^2 = 4.41, allowing us to solve for the compound interest rate R. Therefore, statements A and B together provide the principal sum and the final amount required to calculate the compound interest rate, making them sufficient together.

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