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 interest fetched on the same amount in one year is Rs. $600$.
II Simple interest fetched on the same amount in one year is Rs. $600$
Ill. The amount borrowed is $10$ times the simple interest in $2$ years.

• A. l only
• B. III only
• C. I or II only
• D. I or III only

Answer 1

The correct option is C I or II only

From Statement I, we can conclude

P $\times$ (1 + $\frac{R}{100}$) - P = $600$.

P $\times$ R = 600 $\times$ 100

From Statement II, we can conclude

P $\times$ R $\times$ 1 = 600 $\times$ 100

From Statement III, we can conclude that

we conclude that Rate of Simple interest is 5 p.c.p.a.

So to find the amount to be repaid at the end of $2$ years will require us to know Amount borrowed and rate of interest.

Statement III is must to know Rate of Interest and Either Statement I or Statement II is necessary to find P from R.

so either I or II ir redundant.

option C