General Aptitude - 21.2 Compound Interest - Data Sufficiency 1 Free Online Tests | Mock Tests | Preparation | Practice Tests

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An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned on it at the same rate?
I.	The rate of interest was 8 p.c.p.a.
II.	The total amount of simple interest was Rs. 1200.

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 necessary to answer

E. None of the above

View Answer

Correct choice: D

Explanation:

Given: T = 3 years.

I. gives: R = 8% p.a.

II. gives: S.I. = Rs. 1200.

Thus, P = Rs. 5000, R = 8% p.a. and T = 3 years.

∴ Difference between C.I. and S.I. may be obtained.

So, the correct answer is (E).

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