Aptitude - Compound Interest - Discussion

Each of the questions given below consists of a statement and / or a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statement(s) is / are sufficient to answer the given question. Read the both statements and

  • Give answer (A) if the data in Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question.
  • Give answer (B) 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.
  • Give answer (C) if the data either in Statement I or in Statement II alone are sufficient to answer the question.
  • Give answer (D) if the data even in both Statements I and II together are not sufficient to answer the question.
  • Give answer(E) if the data in both Statements I and II together are necessary to answer the question.

2. 

What will be compounded amount?

I. 

Rs. 200 was borrowed for 192 months at 6% compounded annually.

 II. 

Rs. 200 was borrowed for 16 years at 6%.

[A]. I alone sufficient while II alone not sufficient to answer
[B]. II alone sufficient while I alone not sufficient to answer
[C]. Either I or II alone sufficient to answer
[D]. Both I and II are not sufficient to answer
[E]. Both I and II are necessary to answer

Answer: Option C

Explanation:

 I. Amount = Rs. 200 x 1 + 6 16
100

II. Amount = Rs. 200 x 1 + 6 16
100

Thus, I as well as II gives the answer.

Correct answer is (C).


Ratnesh said: (Jan 9, 2011)  
In the statement II the period is not given that is annually or half yearly.

Sundar said: (Jan 31, 2011)  
192/12 = 16.

192 months = 16 years.

Both I and II are giving the same data. So I or II is enough to find the answer.

The statement-II implicitly gives that the interest is compounded annually.

Prateek said: (Jun 19, 2013)  
In the second one there is nothing mentioned about compounded annually semiannually or quarterly how can we answer.

Shilpa said: (Aug 8, 2013)  
In the statement II, nothing is mentioned that we have to calculate compound amount annually or not, so data is not sufficient in II statement.

Sreenu said: (Dec 12, 2013)  
There is no default condition that we need to take annual compounding when nothing mentioned. So, it is possible only by I not by II.

Mohan said: (Jun 4, 2014)  
In some problems you put -1 and in some problems you don't in the end of formula why it is so.

Dev said: (Sep 5, 2014)  
The second statement doesn't have no. terms.

Only 1 is possible.

Sam said: (Jun 19, 2015)  
In 2nd statement he didn't mentioned interest annually. So only 1 is correct.

Suvo said: (Sep 10, 2016)  
Only 1 is the right option.

Srajan said: (Mar 16, 2017)  
The second statement does not state that whether it is compounded annually or half-yearly.

Abhishek said: (Jul 30, 2018)  
In the second case, it is not mentioned anywhere whether the rate of interest is compounded annually or not so we can't say anything answer-1.

Rohan Singh said: (Sep 1, 2018)  
Can anybody explain the method for solving this?

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