A person invested $500 each in two different schemes S1 and S2. The return on investment will be calculated on compound

[BTGmoderatorDC]

A person invested $500 each in two different schemes S1 and S2. The return on investment will be calculated on compound interest, compounded annually. What is the difference in interests from S1 for 2nd year and S2 for 3rd year?
1. At the beginning of year 2, S1 amounts to $525
2. At the end of year 1, S2 earns $25 more interest compared to S1

Options

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.
E) Statements (1) and (2) TOGETHER are NOT sufficient.


OA C

Source: e-GMAT

[swerve]

A person invested $500 each in two different schemes S1 and S2. The return on investment will be calculated on compound interest, compounded annually. What is the difference in interests from S1 for 2nd year and S2 for 3rd year?
1. At the beginning of year 2, S1 amounts to $525
2. At the end of year 1, S2 earns $25 more interest compared to S1

Options

A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D) EACH statement ALONE is sufficient.
E) Statements (1) and (2) TOGETHER are NOT sufficient.


OA C

Source: e-GMAT

Statement-1:
Can find the rate of interest for s1 alone
\(R=5\%\)
Not sufficient \(\Large{\color{red}\chi}\)

Statement-2:
Not sufficient \(\Large{\color{red}\chi}\)
Because we can't even find the rate of \(s2.\)

Together we can find the rate of interest of both, this the required difference.

Therefore, C