Multiple choice

Passage

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

What is the rate of interest per annum ? I : Simple Interest accrued in two years on the same amount at the same rate of interest is Rs 5400 . II : The amount becomes Rs 15400 in two years on simple interest. III : Difference between the compound interest and simple interest earned in two years on the amount invested is Rs 24.3 .

  1. Only I and II

  2. Only II and III

  3. Only II

  4. Only I and III

  5. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let P be principal, R be rate. Statement I: SI = 5400 in 2 years, so SI = P×R×2/100 = 5400, giving P×R = 270000. Statement II: Amount = P + SI = 15400 in 2 years, so SI = 15400 - P. Statement III: CI - SI = 24.3 in 2 years. Using the formula CI - SI for 2 years: P(R/100)² = 24.3. Combining I and III: From I, P = 270000/R. Substituting in III gives (270000/R)(R²/10000) = 24.3, which solves to R = 9%. Statements I and III alone suffice.

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