Mathematics
Consider the following two statements.
Statement 1: A sum of ₹ 1,000 invested at 10% p.a. rate of interest will earn ₹ 100 interest in first year.
Statement 2: Simple and compound interest is the same for first conversion period at the same rate of interest.
Which of the following is valid?
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.
Related Questions
If the number of conversion periods ≥ 2, then the compound interest is
less than simple interest
equal to simple interest
greater than or equal to simple interest
greater than simple interest
The present population of a city is 12,00,000. If it increases at the rate of 8% every year then the population of the city after 2 years is
199680
1399680
1500000
1299680
Assertion (A): Two friends invest the same amount of money for the same time (> 2 years) at the same rate of interest. One earns simple interest, but the other earns compound interest. Then both will get the same amount of money back at the end of investment.
Reason (R): The principal for each conversion period increases for the compound interest calculation.
Assertion (A) is true, Reason (R) is false.
Assertion (A) is false, Reason (R) is true.
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct reason for Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct reason (or explanation) for Assertion (A).