What is the rate of interest p.c.p.a.? I. Difference between

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Direction: Each of the questions below consists of a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. Read both the statements and Read both the statements and give answer

What is the rate of interest p.c.p.a.?
I. Difference between compound interest and simple interest on an amount or $ 10,000 for two years is $ 225.
II. The amount doubles itself on simple interest in 6²/₃ years.

1. If the data in statement I alone are sufficient to answer the question, while the data in statement I alone are not sufficient to answer the question.
2. If the data in statement II alone are sufficient to answer the question, while the data in statement I alone are not sufficient to answer the question
3. If the data either in statement I alone or in statement II alone are sufficient to answer the question.
4. If the data even in both statements I and II together are not sufficient to answer the question.

Correct Option: C

We know, if we have been given difference of CI and SI during two years, then this difference (D) is equal to

P x r ²

100 ²

where, P = Principal, r = rate of interest
From I : We get the value of P and D. Hence, statement I alone is sufficient.

Again, we known SI =	P x R x T
	100

where, P = principal
r = rate of interest
T = time period
From II : We get value of P = K(say).

Then, SI = K and T = 6	2	years
	3

Hence, using the above formula we can get rate of interest from II alone also.