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Discussion :: Compound Interest

  1. What is the 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.

  2. A.

    I and II only

    B.

    II and III only

    C.

    I and III only

    D.

    I and Either II or III only

    E.

    Any two of the three

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    Answer : Option D

    Explanation :

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

     

     II. gives, Rate = 10% p.a.

     

    III. gives, (C.I.) - (S.I.) = Rs. 465.

     

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

     

    Thus, II is redundant.

     

    Also, from I and II, we get sum = \([\frac { 100 *4500 } { 10*3 }]\) = 15000.

     

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

     

     Thus, III is redundant.

     

     Either II or III is redundant.

     

     


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