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

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Quiz | Comparing Quantities30 mins
Quiz | Comparing Quantities47 mins
Quiz | Calculating Compound Interest Really Compound?46 mins
Foundation | Direct & Inverse Proportions57 mins
Quiz | Percentage35 mins
Quiz | Deciding the Business Future with Profit and Loss54 mins
One Step Ahead of Simple Interest44 mins
Make a Solid Grip on Ratios36 mins
Quiz on Profit, Loss and Discount23 mins
Quiz | Taxes, Discount and CI45 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses
RELATED QUESTIONS :