1. 

What will be the compound interest earned on an amount of ₹ 5000 in 2 years?

I. 

The simple interest on the same amount at the same rate of interest in 5 years is ₹ 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.

A. I only
B. I and II only
C. II and III only
D. I and III only
E. None of these

Answer: Option A

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).