What is the annual rate of interest (per annum)? I. ₹ 6,200 earns ₹ 1,736 simple interest in 2 years. II. ₹ 4,500 earns ₹ 1,348.20 compound interest in 2 years.

Difficulty: Easy

Correct Answer: Either Statement I alone or Statement II alone is sufficient

Explanation:

Introduction / Context:
Determine r uniquely from either SI or CI data over 2 years.

Calculations:

I: r = SI / (P * t) = 1736 / (6200 * 2) = 0.14 ⇒ 14% p.a.
II: For 2 years, CI = P[(1 + r/100)^2 − 1]. Solve (1 + r/100)^2 − 1 = 1348.20 / 4500 = 0.2996 ⇒ (1 + r/100)^2 = 1.2996 ⇒ r ≈ 14% (unique, positive).

Final Answer:
Either statement alone is sufficient.

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