How much will be compounded? I. Rs. 200 was borrowed for 192 months at a compounded annual interest rate of 6%. II. A loan of Rs. 200 was taken out for 16 years at a rate of 6%.
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 not sufficient to answer
Answer:C
How much will be compounded? I. Rs. 200 was borrowed for 192 months at a compounded annual interest rate of 6%. II. A loan of Rs. 200 was taken out for 16 years at a rate of 6%.
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 not sufficient to answer
Explanation: I. Amount = Rs. 200 x 1 + Rs. 200 x 6 /100 16,1II. Sum = Rs. 200 x 1 + 6 /100 16.