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What will be the amount of the end of 2 ...

What will be the amount of the end of 2 years, if the interest is compounded yearly.
I. The simple interest on the same sum for a period of 2 year is Rs.400 at the same rate of `5%` per annum.
II. The difference between the simple interest and the compound interest for 2 years at the rate of `5%` per annum is Rs.100.

A

if the data in statement I alone are sufficient to answer the questin, while the data in statement II alone are not sufficient to answer the question.

B

if the data in statement II alon are sufficient to answer the question, while the data in statement I alone are not sufficient to answer the question.

C

if the data either in statement I alone or in statement II alone in sufficient to answer the question.

D

if the data given in both the statement I and II together are not suffesient to answer the questin, and

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The correct Answer is:
To solve the problem, we need to determine the amount at the end of 2 years when the interest is compounded yearly. We will analyze the two statements provided to see if they are sufficient to answer the question. ### Step 1: Analyze Statement I Statement I states that the simple interest on the same sum for a period of 2 years is Rs. 400 at the same rate of 5% per annum. - We know the formula for simple interest (SI) is: \[ SI = \frac{P \times R \times T}{100} \] where \( P \) is the principal amount, \( R \) is the rate of interest, and \( T \) is the time in years. - Here, \( SI = 400 \), \( R = 5\% \), and \( T = 2 \). - Substituting the values into the formula: \[ 400 = \frac{P \times 5 \times 2}{100} \] \[ 400 = \frac{10P}{100} \] \[ 400 = 0.1P \] \[ P = \frac{400}{0.1} = 4000 \] Now we have found the principal amount \( P = 4000 \). ### Step 2: Calculate Compound Interest Next, we calculate the amount at the end of 2 years using the compound interest formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] where \( A \) is the amount, \( P = 4000 \), \( R = 5\% \), and \( T = 2 \). Substituting the values: \[ A = 4000 \left(1 + \frac{5}{100}\right)^2 \] \[ A = 4000 \left(1 + 0.05\right)^2 \] \[ A = 4000 \left(1.05\right)^2 \] \[ A = 4000 \times 1.1025 = 4410 \] ### Conclusion from Statement I From Statement I alone, we can determine that the amount at the end of 2 years is Rs. 4410. ### Step 3: Analyze Statement II Statement II states that the difference between the simple interest and the compound interest for 2 years at the rate of 5% per annum is Rs. 100. - We know from the previous calculations that: - Simple Interest (SI) for 2 years is \( 400 \). - Let Compound Interest (CI) for 2 years be \( CI \). The difference is given by: \[ CI - SI = 100 \] Substituting \( SI = 400 \): \[ CI - 400 = 100 \] \[ CI = 500 \] ### Step 4: Calculate Principal from Statement II Using the compound interest formula: \[ CI = P \left(1 + \frac{R}{100}\right)^T - P \] Substituting \( CI = 500 \), \( R = 5\% \), and \( T = 2 \): \[ 500 = P \left(1.05^2 - 1\right) \] Calculating \( 1.05^2 - 1 \): \[ 1.05^2 = 1.1025 \implies 1.1025 - 1 = 0.1025 \] So, \[ 500 = P \times 0.1025 \] \[ P = \frac{500}{0.1025} \approx 4878.05 \] ### Conclusion from Statement II From Statement II alone, we can also find the principal amount, but we need to calculate the amount using this principal with the compound interest formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Substituting \( P \approx 4878.05 \): \[ A \approx 4878.05 \times 1.1025 \approx 5378.05 \] ### Final Conclusion Both statements are sufficient to determine the amount at the end of 2 years, but they yield different principals. However, since the question only asks for the amount at the end of 2 years, we can conclude that both statements provide sufficient information to answer the question.

To solve the problem, we need to determine the amount at the end of 2 years when the interest is compounded yearly. We will analyze the two statements provided to see if they are sufficient to answer the question. ### Step 1: Analyze Statement I Statement I states that the simple interest on the same sum for a period of 2 years is Rs. 400 at the same rate of 5% per annum. - We know the formula for simple interest (SI) is: \[ SI = \frac{P \times R \times T}{100} ...
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