Discussion :: Compound Interest

An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned on it at the same rate?
I .The rate of interest was 8 p.c.p.a.
II .The total amount of simple interest was Rs. 1200.
A.
I alone sufficient while II alone not sufficient to answer 
B.
II alone sufficient while I alone not sufficient to answer 
C.
II alone sufficient while I alone not sufficient to answer 
D.
Both I and II are not sufficient to answer 
E.
Both I and II are necessary to answer 
Answer : Option E
Explanation :
Given: T = 3 years.
I. gives: R = 8% p.a.
II. gives: S.I. = Rs. 1200.
Thus, P = Rs. 5000, R = 8% p.a. and T = 3 years.
Difference between C.I. and S.I. may be obtained.
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