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Mathematics

Assertion (A): A certain sum lent out for 5 years at 8% C.I., compounded annually amounts to ₹ x. Then sum lent is ₹ x(1+8100)5x\Big(1+\dfrac{8}{100}\Big)^5.

Reason (R): The sum lent = Amount at the end of 5 years - C.I. of 5 years on it.

  1. A is true, R is false.
  2. A is false, R is true.
  3. Both A and R are true.
  4. Both A and R are false.

Compound Interest

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Answer

A is false, R is true.

Explanation

Given:

A = ₹ x, R = 8 %, T = 5 years

A = P x (1+R100)T\Big(1 + \dfrac{R}{100}\Big)^T

⇒ x = P x (1+8100)5\Big(1 + \dfrac{8}{100}\Big)^5

⇒ P = x(1+8100)5\dfrac{x}{\Big(1 + \dfrac{8}{100}\Big)^5}

⇒ P = x(1+8100)5x\Big(1+\dfrac{8}{100}\Big)^{-5}

Assertion (A) is false.

Compound interest = Amount - Principal

∴ Principal = Amount - Compound interest

∴ The sum lent = Amount at the end of 5 years - C.I. of 5 years on it

Reason (R) is true.

Hence, assertion (A) is false, reason (R) is true.

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