Q. 14.1( 14 Votes )

# Out of the four options, only one is correct. Write the correct answer.

Suppose for the principal P, rate R% and time T, the simple interest is S and compound interest is C. Consider the possibilities.

(i) C > S

(ii) C = S

(iii) C < S

Then

A. only (i) is correct.

B. either (i) or (ii) is correct.

C. either (ii) or (iii) is correct.

D. only (iii) is correct.

Answer :

Let the principal (P) = ₹100

Rate of interest (R) = 100% and time period (T) = nyr

Then, simple interest = = = ₹20

We know that,

A = P

= 100 × = ₹121

∴ compound interest, CI = A – P = ₹121 – ₹100 = ₹21

So, C > S

Hence, option (a) is correct.

In option (b), It says either c>s or c = s. Therefore, we can see that according to assumption it is not correct

In option (c), It says either c = s or c<s. Therefore, we can see that according to assumption it is not correct

In option (d), It says either c<s. Therefore, we can see that according to assumption it is not correct

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