A sum of money was lent for a period of three years. What is the difference between simple and compound interest collected on the same amount of money? The point of interest was 8 p.c.p.a. Simple interest amounted to Rs. 1200 in total.
A. I alone sufficient while II alone not sufficient to answer
B. II alone sufficient while I alone not sufficient to answer
C. Either I or II alone sufficient to answer
D. Both I and II are necessary to answer
Answer:D
A sum of money was lent for a period of three years. What is the difference between simple and compound interest collected on the same amount of money? The point of interest was 8 p.c.p.a. Simple interest amounted to Rs. 1200 in total.
A. I alone sufficient while II alone not sufficient to answer B. II alone sufficient while I alone not sufficient to answer C. Either I or II alone sufficient to answer D. Both I and II are necessary to answer
Explanation: Given T = 3 years, I. produces R = 8% p.a.S.I. = Rs. 1200, according to II.As a result, P = Rs. 5000, R = 8% p.a., and T = 3 years.