Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - Data Sufficiency 2 (Q.No. 2)
Directions to Solve
Each of the questions given below consists of a question followed by three statements. You have to study the question and the statements and decide which of the statement(s) is/are necessary to answer the question.
2.
What will be the compound interest earned on an amount of Rs. 5000 in 2 years? | |
I. | The simple interest on the same amount at the same rate of interest in 5 years is Rs. 2000. |
II. | The compound interest and the simple interest earned in one year is the same. |
III. | The amount becomed more than double on compound interest in 10 years. |
Answer: Option
Explanation:
P = Rs. 5000 & T = 2 years.
I. S.I. on Rs. 5000 in 5 years is Rs. 2000.
| 5000 x R x 5 | = 2000  R = 8. |
|
| 100 |
Thus I only gives the answer.
Correct answer is (A).
Discussion:
13 comments Page 1 of 2.
Ali abdullah said:
1 decade ago
Data given for compound interest: Present value (P) = 5000 time (t1) = 2-years rate (r) =?
Data given for simple interest: Interest (I) = 2000 time (t2) = 5-years.
Solution:
I = prt.
2000 = 5000(r)(5).
R = 0.08 = 8%.
Rate (r) = 8%.
Compound interest for 1st year: I = s-p.
S = p(1+r/m)^mt.
S = 5000(1+{0.08/1})^(1*1) = 5400.
I = 5400-5000 = 400.
Compounded interest for 1st year.
I (compound) = 400.
Simple interest for 1st year:
I = prt.
I = 5000*0.08*1 = 400.
I(simple) = 400.
So I(simple) = i(compound).
400 = 400.
So (option A and B only) is correct.
In second option I says interest is same for the 1st year and the rate that we calculated was compounded yearly, and was not mentioned whether it was quarterly, semiannually or monthly etc. So if we calculate the interest for the 1st year it is same. As mentioned above.
Data given for simple interest: Interest (I) = 2000 time (t2) = 5-years.
Solution:
I = prt.
2000 = 5000(r)(5).
R = 0.08 = 8%.
Rate (r) = 8%.
Compound interest for 1st year: I = s-p.
S = p(1+r/m)^mt.
S = 5000(1+{0.08/1})^(1*1) = 5400.
I = 5400-5000 = 400.
Compounded interest for 1st year.
I (compound) = 400.
Simple interest for 1st year:
I = prt.
I = 5000*0.08*1 = 400.
I(simple) = 400.
So I(simple) = i(compound).
400 = 400.
So (option A and B only) is correct.
In second option I says interest is same for the 1st year and the rate that we calculated was compounded yearly, and was not mentioned whether it was quarterly, semiannually or monthly etc. So if we calculate the interest for the 1st year it is same. As mentioned above.
(2)
Sangeeta kumari said:
10 years ago
Answer:
It's nothing like annually or quarterly is not being given.
Answer as option A is correct.
Reason:
Option A gives R.
In option B 'R' on both sides get cancelled because when it's given S.I = C.I for one year both become same. So you don't get are as it is cancelled on both R.H.S and on L.H.S.
EXPLANATION:
5000 (1+R/100)^1-5000 = 5000*R*1/100.
5000 ((100+R))/100-5000 = 50R.
50R = 50R.
So from where you would get R! it is cancelled.
And even if we had got are from option B which in this case we are not getting, option should have been I OR II, not I AND II.
It's nothing like annually or quarterly is not being given.
Answer as option A is correct.
Reason:
Option A gives R.
In option B 'R' on both sides get cancelled because when it's given S.I = C.I for one year both become same. So you don't get are as it is cancelled on both R.H.S and on L.H.S.
EXPLANATION:
5000 (1+R/100)^1-5000 = 5000*R*1/100.
5000 ((100+R))/100-5000 = 50R.
50R = 50R.
So from where you would get R! it is cancelled.
And even if we had got are from option B which in this case we are not getting, option should have been I OR II, not I AND II.
(3)
Prateek said:
1 decade ago
For the compound interest, its not mentioned that the sum will be compounded either annually, half yearly or quarterly.
Line I gives the rate of interest and Line II gives the details of sum being compounded at what rate. So answer should be I & II.
Line I gives the rate of interest and Line II gives the details of sum being compounded at what rate. So answer should be I & II.
Satyam said:
8 years ago
Actually in (A) same principle been used i.e 5000(given).
As well as rate of interest are also same
So p=5000, r=?, t=5.
SI=prt/100.
2000=5000*r*5/100.
r = 2000*100/5000*5.
r = >8.
So, the rate of interest is same as given.
As well as rate of interest are also same
So p=5000, r=?, t=5.
SI=prt/100.
2000=5000*r*5/100.
r = 2000*100/5000*5.
r = >8.
So, the rate of interest is same as given.
Karthik NL said:
5 years ago
I think the answer should be [D].
I and III only.
In III as well you'll get an equation with only are as variable. P and T is already given, R can be determined from the equation :
10, 000> 5000[1 + (R/10) ]^10.
I and III only.
In III as well you'll get an equation with only are as variable. P and T is already given, R can be determined from the equation :
10, 000> 5000[1 + (R/10) ]^10.
Gajendra bisht said:
1 decade ago
In the second option, The compound interest and the simple interest earned in one year is the same.
Since compound interest and simple interest of first one year is same so why this option is also not true.
Since compound interest and simple interest of first one year is same so why this option is also not true.
Raushan said:
1 decade ago
Why not answer is (B)?
From first statement it is not clear that amount is being compounded yearly. So for this information, we will need statement (2).
So both 1 and 2 are needed for solution.
From first statement it is not clear that amount is being compounded yearly. So for this information, we will need statement (2).
So both 1 and 2 are needed for solution.
Pooja said:
1 decade ago
I think answer should be E as no option is given that states I and II individually are sufficient.
(1)
Sai said:
1 decade ago
If we use PTR/100 formula, P=5000 T= 5 then it will be equal to 250 right? What is that 2000?
Vaibhav khandelwal said:
8 years ago
We can use the second statement as well to find the value of R.
(3)
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