Instructions

In each of these questions, one question is given followed by data in three statements I, II and III. You have to study the question and the data in statements and decide the question can be answered with data in which of the Statements and mark your answer accordingly.

Question 171

# What is the rate of interest p.c.p.a.? Statements: I. Difference between the compound interest and simple interest earned two years on the amount invested is Rs. 100/- II. The amount becomes Rs. 19,500/- in the three years on simple interest. III. Simple interest accrued in two years on the same amount at the same rate of interest is Rs.3,000/-.

Solution

Using statement 1, we get

$$P(1+\frac{R}{100})^2 - P - (P*R*2)/100 = 100$$

$$\frac{PR^2}{10000} = 100$$

$$PR^2 = 1000000$$

Using statement 3, we get

P*R*3/100 = 3000

PR = 100000

From these 2 statements we get R = 10%

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