Discussion :: Simple Interest

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
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 
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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