Mr. Arun borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years? 1. The rate of interest is 5 % p.a. 2. Simple interest fetched on the same amount in one year is Rs. 600. 3. The amount borrowed is 10 times the simple interest in 2 years.

Mr. Arun borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years? 1. The rate of interest is 5 % p.a. 2. Simple interest fetched on the same amount in one year is Rs. 600. 3. The amount borrowed is 10 times the simple interest in 2 years. Correct Answer <span lang="EN-US" style=" line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">2 </span><span lang="EN-US" style=" line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">and either 1 or 3 only</span>

Calculation:

1. Gives, Rate = 5% p.a.

2. Gives, S.I. for 1 year = Rs. 600

3. Gives, Sum = 10 x (S.I. for 2 years)

Now 1, and 2 give the sum

For this sum, C.I. and hence amount can be obtained

Thus, 3 is redundant

Again, 2 gives S.I. for 2 years = Rs. (600 x 2) = Rs. 1200

Now, from 3, Sum = Rs. (10 x 1200) = Rs. 12000

Thus, Rate = 100 X 1200/ 2 X 12000 = 5% p.a  

Thus, C.I. for 2 years and therefore, amount can be obtained

Thus, 1 is redundant

Hence, 1 or 3 redundant