1. 

What is the compound interest earned at the end of 3 years?

I. 

Simple interest earned on that amount at the same rate and for the same period is Rs. 4500.

II. 

The rate of interest is 10 p.c.p.a.

 III. 

Compound interest for 3 years is more than the simple interest for that period by Rs. 465.

A. I and II only
B. II and III only
C. I and III only
D. I and Either II or III only
E. Any two of the three

Answer: Option D

Explanation:

  I. gives, S.I for 3 years = ₹ 4500.

 II. gives, Rate = 10% p.a.

III. gives, (C.I.) - (S.I.) = ₹ 465.

Clearly, using I and III we get C.I. = ₹ (465 + 4500).

Thus, II is redundant.

Also, from I and II, we get sum = 100 x 4500
10 x 3

= 15000.

Now C.I. on ₹ 15000 at 10% p.a. for 3 years may be obtained.

Thus, III is redundant.

∴ Either II or III is redundant.