Q:
      
      
         
            
Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years?
I. The rate of interest is 5 p.c.p.a.
II. Simple interest fetched on the same amount in one year is Rs. 600.
III. The amount borrowed is 10 times the simple interest in 2 years.
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: D) .II and Either I or III only         
         
Explanation: 
 
 
I. gives, Rate = 5% p.a.
 
II. gives, S.I. for 1 year = Rs. 600.
 
III. gives, sum = 10 x (S.I. for 2 years).
 
Now I, and II give the sum.
 
For this sum, C.I. and hence amount can be obtained.
 
Thus, III is redundant.
 
Again, II gives S.I. for 2 years = Rs. (600 x 2) = Rs. 1200.
 
Now, from III, Sum = Rs. (10 x 1200) = Rs . 12000.
 
Thus, Rate =
 
100 x 1200
 
= 5% p.a.
 
2 x 12000
 
Thus, C.I. for 2 years and therefore, amount can be obtained.
 
Thus, I is redundant.
 
Hence, I or III redundant.
       
      
      
      
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