Question

What will be the compound interest on a sum after 3 years?
Statement I I. The compound interest on the sum at 5% per annum for 2 years is Rs. 12.50 more than the simple interest.
Statement II II. The difference between compound interest and simple interest on the sum for 3 years at 5% per annum is Rs. 38.125.

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

Hint:

When dealing with compound and simple interest, remember that the compound interest increases more rapidly than simple interest over time. Use the differences provided to solve for the principal and interest rates.

Answer 1

The Correct Option is C

- From Statement I, we can find the sum for which the compound interest after 2 years is Rs. 12.50 more than the simple interest. Once we know the sum, we can calculate the compound interest after 3 years.
- From Statement II, we can directly calculate the compound interest using the given difference between compound interest and simple interest.
Since both statements are sufficient to calculate the compound interest individually, the correct answer is (C).