Question
What is the principal? I. The simple interest
obtained on the principal after 2 years at 16% rate of interest is Rs 140.8 less than the compound interest obtained on the same principal after 2 years at 16% per annum. II. The sum becomes double in 10 years at 6% per annum. III. The compound interest obtained on the principal is Rs 1,830.4 after 2 years at the rate of 8% compounded annually. In each of these questions, one question is given followed by by data in three statements I, II and III. You have to study the question and data in the statements and decide that the question can be answered with the data given in which of the statements and mark your answer accordingly. ÂSolution
From I Given D = 140.8 T = 2 years and rate = 16% ∴ D = PR²/((100)²) 140.8 = (P × 256)/(100  × 100) ∴ P = (140.4 × 100 × 100)/256 = Rs 55,000 From II We cannot find the exact amount of principal. From III CI = 3660.8 T = 2 years , rate = 16% We can find the principal from this statement easily. Hence, either statement I or statement III is sufficient to answer the question.Â
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