Simple Interest - Arithmetic Aptitude Questions and Answers

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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

I and II only

II and III only

I and III only

I and Either II or III only

Any two of the three

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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