Compound Interest Q17

17.      What is the rate of compound interest?

I.The principal was invested for 4 years.

II. The earned interest was Rs. 1491.

A.        I alone sufficient while II alone not sufficient to answer

B.        II alone sufficient while I alone not sufficient to answer

C.        Either I or II alone sufficient to answer

D.        Both I and II are not sufficient to answer

E.        Both I and II are necessary to answer

Answer: Option D

Explanation:

Let Principal = Rs. P and Rate = R% p.a. Then,

Amount = Rs.		P		1 +	R		4
					100

C.I. =	P			1 +	R		4	- 1
					100

	P			1 +	R		4	- 1		= 1491.
					100

Clearly, it does not give the answer.

                        Correct answer is (E).