What is the p.c.p.a. rate of interest? I.On simple interest, a sum doubles after 5 years. II.The difference between compound and simple interest generated on a given sum over two years is Rs. 400. III.The annual simple interest received is Rs. 2000.
A. I only
B. II and III only
C. All I, II and III
D. I only or II and III only
Answer:D
What is the p.c.p.a. rate of interest? I.On simple interest, a sum doubles after 5 years. II.The difference between compound and simple interest generated on a given sum over two years is Rs. 400. III.The annual simple interest received is Rs. 2000.
A. I only B. II and III only C. All I, II and III D. I only or II and III only
Explanation: P x R x 5/100 = P R = 20. I. P x R x 5/100 = P R = 20.II. P 1 + R/100 TO THE POWER 2- P - P x R x 2 /100= 400 PR2 = 4000000 P 1 + R/100 TO THE POWER 2- P - P x R x 2 /100= 400 PR2 = 4000000III. P x R x 1/100 = 2000 PR = 200000 P x R x 1/100 = 2000=PR2/PR= 4000000 / 200000 = 20.