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Question

Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years?
I. The rate of interest is 5 p.c.p.a.
II. Simple interest fetched on the same amount in one year is Rs.600.
III. The amount borrowed is 10 times the simple interest in 2 years.

A
I only
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B
III only
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C
I or II only
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D
II and Either I or III only
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E
All I, II and III are required
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Solution

The correct option is D II and Either I or III only
I. gives, Rate=5% p.a.
II. gives, S.I. for 1 years=Rs.600.
III. gives, sum=10×(S.I. for 2 years).
Now I, and II give the sum.
For this sum, C.I. and hence amount can be obtained.
Thus, III is redundant.
Again, II gives S.I. for 2 years=Rs.(600×2)=Rs.1200.
Now, from III, Sum=Rs.(10×1200)=Rs.12000.
Thus, Rate=100×12002×12000=5% p.a.
Thus, C.I. for 2 years and therefore, amount can be obtained.
Thus, I is redundant.
Hence, I or III redundant.

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