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Discussion :: Simple Interest

  1.  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 rate of interest is 5 p.c.p.a.

    II.Simple interest fetched on the same amount in one year is Rs. 600.

    III.The amount borrowed is 10 times the simple interest in 2 years.

  2. A.

    I only


    III only


    I or II only


    II and Either I or III only


    All I, II and III are required

    View Answer


    Answer : Option A

    Explanation :

       I. gives, Rate = 5% p.a.

      II. gives, S.I. for 1 year = Rs. 600.

      III. gives, sum = 10 x (S.I. for 2 years).

    Now I, and II give the sum.

    For this sum, C.I. and hence amount can be obtained.

    Thus, III is redundant.

    Again, II gives S.I. for 2 years = Rs. (600 x 2) = Rs. 1200.

    Now, from III, Sum = Rs. (10 x 1200) = Rs . 12000.

    Thus, Rate =\(\frac { 100*1200 } { 2 *12000}\)=5%p.a

    Thus, C.I. for 2 years and therefore, amount can be obtained.


    Thus, I is redundant.


    Hence, I or III redundant.



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