What is the rate of interest p.c.p.a.?

I. An amount doubles itself in 5 years on simple interest.

II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400.

III. Simple interest earned per annum 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) I only or II and III only

Explanation:

$I . \frac{P * R * 5}{100} = P \Leftrightarrow R = 20$

$I I . P {(1 + \frac{R}{100})}^{2} - P - \frac{P * R * 2}{100} = 400 = > p R^{2} = 4000000$

$I I I . \frac{P * R * 1}{100} = 2000 = > P R = 200000$

$\frac{P R^{2}}{P R} = \frac{4000000}{200000} \Leftrightarrow R = 20$

Thus I only or (II and III) give answer.

Correct answer is (D)

Subject: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO