The cost of a machine depreciates every year by 10%; the percentage decrease during two years will be:

1. 20%

2. 18%

3. 19%

4. 21%

Assertion (A): On a certain sum and at a certain rate,

C.I. for 3rd year = Amount of 3rd year - Amount of 2nd year

Reason (R): A in 3 years = Principal + C.I. for 3 years and A in 2 years = Principal + C.I. for 2 years

⇒ A in 3 years - A in 2 years = C.I. for 3rd year

1. A is true, but R is false.

2. A is false, but R is true.

3. Both A and R are true, and R is the correct reason for A.

4. Both A and R are true, and R is the incorrect reason for A.

Statement 1: Rate of C.I. accrued in 3rd year

= $\dfrac{\text{Amount of 3 years - Amount of 2 years}}{\text{Amount in 2 years}} \times 100\%$

Statement 2: Amount at the end of 3 years = Amount at the end of 2nd year + Interest on it.

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.

Statement 1: If P is the sum invested for 2 years at 20% rate of interest

= ₹ P x $\dfrac{20}{100} \times \dfrac{20}{100}$

Statement 2: Interest accrued in 2 years = ₹ (P x $\dfrac{120}{100} \times \dfrac{120}{100} - P)$

1. Both the statements are true.

2. Both the statements are false.

3. Statement 1 is true, and statement 2 is false.

4. Statement 1 is false, and statement 2 is true.