Mathematics
Assertion (A) : The simple interest on ₹ 15,000 in 2 years at 6% p.a. is ₹ 1,800. Then compound interest on the same sum at the same rate of interest for 2 years will never be less than ₹ 1,800.
Reason (R) : For a given principal, rate and time, both simple interest and compound interest are equal for the 1st year.
Both A and R are correct, and R is the correct explanation for A.
Both A and R are correct, and R is not the correct explanation for A.
A is true, but R is false.
A is false, but R is true.
Answer
We know that,
If time is greater than 1 year, then compound interest on the same sum at the same rate of interest for same time will always be greater than simple interest.
∴ If simple interest on ₹ 15,000 in 2 years at 6% p.a. is ₹ 1,800. Then compound interest on the same sum at the same rate of interest for 2 years will never be less than ₹ 1,800.
So, assertion (A) is true.
For a given principal, rate and time, both simple interest and compound interest are equal for the 1st year.
So, reason (R) is true and reason (R) does not explains assertion (A).
Hence, option 2 is the correct option.
Related Questions
Statement 1: On a certain sum, at the same rate of interest and for the same time period, compound interest is always greater than the simple interest.
Statement 2: In compound interest, the principal remains constant for the whole time period, however the compound interest keeps increasing every year.
Which of the following options is correct?
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.
Assertion (A): Compound interest for the 2nd year on ₹ 8,000 at 5% p.a. is ₹ 820.
Reason (R): Compound interest for 2 years = Amount at the end of 2nd year - original sum.
Both A and R are correct, and R is the correct explanation for A.
Both A and R are correct, and R is not the correct explanation for A.
A is true, but R is false.
A is false, but R is true.
Assertion (A) : On ₹ 8,750 at 8% p.a., the simple interest for 1st year is equal to the simple interest for 4th year.
Reason (R) : Simple interest for 4th year = Amount at the end of 4th year - original sum.
Both A and R are correct, and R is the correct explanation for A.
Both A and R are correct, and R is not the correct explanation for A.
A is true, but R is false.
A is false, but R is true.