Multiple choice

Passage

Each of these questions consists of a question followed by informations in three statements. You have to study the question and the statements and decide that information in which of the statement(s) is/are necessary to answer the question.

Find the rate of simple interest per annum. Statement I. A borrowed Rs 9000 from B for two years on simple interest. Statement II. A returned Rs 11700 to B at the end of two years and settled the loan. Statement III. A sum of money becomes double in 20/3 years on simple interest.

  1. The data in statements I alone is sufficient to answer the question, while the data in statement II and III is not sufficient to answer the question.

  2. The data in statements II alone is sufficient to answer the question, while the data in statement I and III is not sufficient to answer the question.

  3. The data in any two of the three statements is sufficient to answer the question.

  4. The data in all the statements I, II and III is not sufficient to answer the question.

  5. The data in statements I and II together or in statement III alone is sufficient to answer the question
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

From Statements I and II: Principal = 9000, Amount = 11700, Time = 2 years. Interest = 11700 - 9000 = 2700. Rate = (100 * Interest) / (Principal * Time) = (100 * 2700) / (9000 * 2) = 15%. From Statement III alone: Sum doubles in 20/3 years, so Interest = Principal. Rate = (100 * P) / (P * 20/3) = 15%. Both methods give the same answer.

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