Question

What is the total compound interest earned at the end of 3 years ?
I, Simple interest earned on that amount at the same rate and for the same period is Rs. 4500.
II. The rate of interest is 10 p.c.p.a
III. Compound interest for 3 years is more than the simple interest for that period by Rs. 465

• A. I and II only
• B. II and III only
• C. I and III only
• D. Either II or III only

Answer 1

Answer: (D)

Either II or III only

Option D is the correct answer

Explanation

Statement 1 gives, S.I for 3 years = Rs. 4500.

Statement 2 gives , Rate $=$ 10% p.a.

Statement 3 gives , (C.I.) - (S.I.) $=$ Rs. 465.

Clearly, using (1) and (3), we get C.I. $=$ Rs. (465 + 4500).

Thus, Statement 2 is redundant.

Also, from I and II, we get sum $=\frac{100\times 4500}{10\times 3}=15000$

Now C.I. on Rs. 15000 at 10% p.a. for 3 years may be obtained.

Thus, Statement 3 is redundant.

Hence, either Statement 2 or 3 is redundant.