A bank Compounds interest for its Customers annually. How much Interest is earned in one year on Rs. 300?
(1) Interest rate per annum is 20%.
(2) Interest earned in two years on Rs. 300 is Rs. 132.
- Statement 1 alone is sufficient but statement 2 alone is not sufficient to answer the question asked
- Statement 2 alone is sufficient but statement 1 alone is not sufficient to answer the question asked
- Both statements 1 and 2 together are sufficient to answer the question but neither statement 1 nor statement 2 is sufficient alone
- Each statement alone is sufficient to answer the question.
- Statements 1 and 2 together are not sufficient to answer the question asked, and additional data specific to the problem are needed.
according to statement 1 interest rate per annum is given and for 1 year we can calculate the interest just by simple interest formula = p.1.r/100
So, statement 1 is alone sufficient.
According to statement 2 interest earned inn two years is Rs. 132
Applying the compound interest formula:
432 = 300 (1 + r)2
144/100 = (1+r)2
(1+r) = 1.2
From here we will get r = .2
So the rate is again 20%
Now, again we could calculate the interest for 1 year.
So, statement 2 is also alone sufficient.