Mr. Gupta took out a loan with compound interest. What would be the repayment amount if he repays the whole amount at the conclusion of the two-year period? I. The interest rate is 5% per annum. II. One year's simple interest on the same money is Rs. 600. III. In two years, the amount borrowed is 10 times the basic interest.
A. I only
B. I and II only
C. II and III only
D. I and III only
Answer:D
Mr. Gupta took out a loan with compound interest. What would be the repayment amount if he repays the whole amount at the conclusion of the two-year period? I. The interest rate is 5% per annum. II. One year's simple interest on the same money is Rs. 600. III. In two years, the amount borrowed is 10 times the basic interest.
A. I only B. I and II only C. II and III only D. I and III only
Explanation: Rate = 5% p.a., according to I.S.I. for a year Equals Rs. 600, according to II.III. reveals that total = 10 x (S.I. for 2 years).Now I and II add up the total.C.I. and therefore amount may be calculated for this sum.As a result, III is superfluous.S.I. for two years = Rs. (600 x 2) = Rs. 1200, according to II.Now, sum Equals Rs. (10 x 1200) = Rs. 12000 (from III).As a result, Rate = 100 x 1200 = 5% p.a. 2 x 1200.As a result, C.I. for two years may be gained, and therefore an amount can be obtained.As a result, I am superfluous.As a result, I or III are no longer necessary.