Direction: Each of the questions below consists of a question and three statements numbered I, II and III given below it. You have to study the questions and decide the data in which of the statements are sufficient to answer the questions.
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What is the rate of interest p.c.p.a.?
I. The amount doubles itself in 5 years on simple interest.
II. Difference between the compound interest and the simple interest earned on this amount in two years is $400.
III. Simple interest earned per annum is $2000.
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- Only I
- Only II and III
- Any two of the three
- All I, II and III
- Only I or only II and III
Correct Option: E
Let amount = $ A
According to ( I ) statement ,
I. A = 2A
From I alone,
Here , A2 = $ 2A , A1 = $ A , T = 5 years
| Rate of interest = | ( A2 - A1 ) | x 100 |
| A1 |
| Rate of interese = | (2 - 1) x 100 | = | 20 % |
| 5 |
II. CI - SI = $400.
III. Simple interest earned per annum = $2000
From II and III
| Rate of interese = | 2 x difference in CI and SI | [For 2 years only] |
| SI |
| Rate of interese = | 2 x 400 | x 100 % | |
| 2 x 2000 |
| Rate of interese = | 800 | x 100 | = 20 % |
| 4000 |
Hence, either I alone or II and III together are sufficient.
