1. 

Mr. Gupta 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?

I. 

The rate of interest is 5 p.c.p.a.

II. 

Simple interest fetched on the same amount in one year is ₹ 600.

 III. 

The amount borrowed is 10 times the simple interest in 2 years.

A. I only
B. III only
C. I or II only
D. II and Either I or III only
E. All I, II and III are required

Answer: Option D

Explanation:

  I. gives, Rate = 5% p.a.

 II. gives, S.I. for 1 year = ₹ 600.

III. gives, sum = 10 x (S.I. for 2 years).

Now I, and II give the sum.

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

Thus, III is redundant.

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

Now, from III, Sum = ₹ (10 x 1200) = ₹ 12000.

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

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

Thus, I is redundant.

Hence, I or III redundant.