Question

The question below consists of a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. Read both the statements and give answer
In what time does a sum of money become four times on simple interest?
I. Rs.4000 amounts to Rs.4800 in two years on SI.
II. The difference between compound interest and simple interest at the end of two years is Rs.40.

• A. the data in statement I alone are sufficient to answer the question, while the data in statement II alone are not sufficient to answer the question.
• B. the data in statement II alone are sufficient to answer the question, while the data in statement I alone are not sufficient to answer the question.
• C. the data either in statement I alone or in statement II alone are sufficient to answer the question.
• D. the data even in both statements I and II together are not sufficient to answer the question.

Answer 1

The Correct Option is D

Let's analyze each statement:
Statement I: Rs. 4000 becomes Rs. 4800 in two years on simple interest. This gives us the rate of interest but does not help determine the time for a sum to become four times.
Statement II: The difference between compound interest and simple interest at the end of two years is Rs. 40. Without knowing the principal or rate, this is insufficient on its own.
Even when combined, both statements lack the necessary details to find the time for a sum to become four times on simple interest.
So, the correct option is (D): Both statements together are not sufficient to answer the question.