Discussion Forum



Each of the questions given below consists of two statements numbered I and II given below it. Please read the questions carefully and decide whether the data provided in the statement(s) is / are sufficient to answer the given question.

1)

What is the compund interest earned by James at the end of $2$ years ?

I. Simple interest at the same rate for one year is Rs. $1020$ and the rate of interest is $12$ p.c.p.a

II. The amount invested is Rs. $8500$.


A) I alone sufficient while II alone not sufficient to answer

B) II alone sufficient while I alone not sufficient to answer

C) Either I or II alone sufficient to answer

D) Both I and II are not sufficient to answer

E) Both I and II are necessary to answer

Answer:

Option A

Explanation:

I. $S.I.$ = Rs. $1020$, $R$ $=12\%$ p.a and $T$ = $1$ year.

$\therefore P$ $=\frac{100\times S.I.}{R\times T}$

$\Rightarrow P$ = Rs. $\left(\frac{100\times 1020}{12\times 1}\right)$ = Rs. $8500$.

$\therefore$ $C.I$ for $2$ years = Rs. $\left[8500\times \left\{\left(1+\frac{12}{100}\right)^{2}-1\right\}\right]$

II. gives : only $P$ and $T$

$\therefore$ II alone does not give the answer.

$\therefore$ Correct answer is (A).