Compound Interest – Data Sufficiency 2


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Directions to Solve

Each of the questions given below consists of a question followed by three statements. You have to study the question and the statements and decide which of the statement(s) is/are necessary to answer the question.

1. What is the rate of interest p.c.p.a.?
I. An amount doubles itself in 5 years on simple interest.
II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400.
III. Simple interest earned per annum is Rs. 2000.

A. I only
B. II and III only
C. All I, II and III
D. Any two of the three
E. I only or II and III only

Correct Answer: E. I only or II and III only

Answer Explanation:

the rate of interest p.c.p.a.

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2. What will be the compound interest earned on an amount of Rs. 5000 in 2 years?

I. The simple interest on the same amount at the same rate of interest in 5 years is Rs. 2000.
II. The compound interest and the simple interest earned in one year is the same.
III. The amount became more than double on compound interest in 10 years.

A. I only
B. I and II only
C. II and III only
D. I and III only
E. None of these

Correct Answer: A. I only

Answer Explanation:

the compound interest earned

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