Each of these questions have a question followed by information given in three statements I, II and III. You have to study the question along with the information in three statements and decide that the information in which of the statement(s) is/are necessary to answer the question ?
What is the principal amount ?
I. Difference between simple interest and compound interest for 2 years is Rs. 37.50
II. Simple interest for 3 years is Rs. 2,250
III. Simple interest and compound interest for the first year the equal.
Simple Interest = PRT/100
Compound Interest = $$P * (1+R/n)^{nT}$$ - P where n is the compounding frequency
Statement I gives us 1 equation with 3 variables P, R and n. Hence, the answer cannot be found by Statement I alone.
Statement II gives 1 equation with P and R. Hence, the answer cannot be found by statement II alone.
Statement III gives us that n=1. Hence, the answer cannot be found using III alone.
Hence, all three statements are required to solve for P. Hence, option E.
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