Mathematics
Assertion (A): A certain sum lent out for 5 years at 8% C.I., compounded annually amounts to ₹ x. Then sum lent is ₹ .
Reason (R): The sum lent = Amount at the end of 5 years - C.I. of 5 years on it.
- A is true, R is false.
- A is false, R is true.
- Both A and R are true.
- 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
⇒ x = P x
⇒ P =
⇒ P =
∴ 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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