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
• B. III only
• C. I or II only
• D. II and Either I or III only
• E. All I, II and III are required

Answer 1

The correct option is D II and Either I or III only

I. gives, $Rate=5$% p.a.
II. gives, S.I. for $1years=Rs.600$.
III. gives, $sum=10\times (S.I.$ for $2years)$.
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 $2years=Rs.(600\times 2)=Rs.1200$.
Now, from III, $Sum=Rs.(10\times 1200)=Rs.12000$.
Thus, $Rate=\frac{100\times 1200}{2\times 12000}=5$% p.a.
Thus, C.I. for $2$ years and therefore, amount can be obtained.
Thus, I is redundant.
Hence, I or III redundant.