Multiple choice

Passage

Each of the questions below consists of a question and two statements I, and II given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. Read all the statements and give answer.

Find the amount of money invested by Mehar singh in the scheme? Statement I : An increase in simple interest from 44/3% to 58/3% per annum increases his yearly income by 2800. Statement II : The sum invested get doubled, when invested at 20% per annum for 5 years.

  1. If the 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. If the 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. If the data either in statement I alone or in statement II alone is sufficient to answer the question.

  4. If the data in both statements I and II together are necessary to answer the question.

  5. If the data given in both statements I and II together are not sufficient to answer the question.
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A Correct answer
Explanation

Statement I: Rate increase from 44/3% to 58/3% is 14/3% = 4.67%. Income increase = 2800. So 4.67% of Principal = 2800, giving Principal = 2800 × 100 / (14/3) = 60,000. Statement II gives that P doubles at 20% for 5 years, which means P = P(1 + 20×5/100) only works for simple interest, but this doesn't give a unique principal value. Only Statement I is sufficient.

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