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Choose $1$ if the question can be answered by using one of the statements alone, but cannot be answered using the other statement alone.

Choose $2$ if the question can be answered by using either statement alone.

Choose $3$ if the question can be answered by using both statements together, but cannot be answered using either statement alone.

Choose $4$ if the question cannot be answered even by using both statements together.

Is Country X's GDP higher than country Y's GDP?

- GDPs of the countries X and Y have grown over the past five years at compounded annual rate of $5\%$ and $6\%$ respectively.
- Five years ago, GDP of country X was higher than that of country Y.
- $1$
- $2$
- $3$
- $4$

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Best answer

$1^{st}$ condition

" GDPs of the countries X and Y have grown over the past five years at compounded annual rate of $5\%$ and $6\%$ respectively. "

If country X has growth rate $5$ years back A

Now GDP for $X =A(1+5/100)^{5}$

Now GDP for $Y=B(1+6/100)^{5}$

$2^{nd}$ condition is

" Five years ago, GDP of country X was higher than that of country Y "

But until we know X was actually how much higher than Y

We cannot conclude anything

So, answer is

4) if the question cannot be answered even by using both statements together.

" GDPs of the countries X and Y have grown over the past five years at compounded annual rate of $5\%$ and $6\%$ respectively. "

If country X has growth rate $5$ years back A

Now GDP for $X =A(1+5/100)^{5}$

Now GDP for $Y=B(1+6/100)^{5}$

$2^{nd}$ condition is

" Five years ago, GDP of country X was higher than that of country Y "

But until we know X was actually how much higher than Y

We cannot conclude anything

So, answer is

4) if the question cannot be answered even by using both statements together.