Multiple choice

Passage

In each of the following questions is followed by three statements study the question and the statements and decide the information given in which of the statement(s) is/are necessary to answer the question ?

Find principle amount? I. The compound interest on the same sum for two years is 484. II. Rate of interest is 5%. III. The difference between compound interest and simple interest on that sum is Rs. 41.

  1. Only I

  2. Only II

  3. II with either I or III

  4. All are not sufficient

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let principal be P and rate r=5%. CI for 2 years = P(1+r/100)^2 - P = P(1.05^2-1) = P(0.1025) = 484, so P = 484/0.1025. CI-SI difference for 2 years at rate r% is P(r/100)^2 = P(0.05)^2 = 0.0025P = 41. Both give P uniquely. Either alone with rate suffices.

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