Q1. Given below are two statements :
Statement I: A savings account at Bank A pays 6.2% interest, compounded annually. Bank B’s savings account pays 6% compounded semi-annually. Bank B is paying less total interest each year.
Statement II: A sum of money at a certain rate of compound interest doubles in 3 years. In 9 years, it will be P times original principal. Then P = 9.
In the light of the above statements, choose the correct answer from the options given below.
A Both Statement I and Statement II are true
B Both Statement I and Statement II are false
C Statement I is true but Statement II is false
D Statement I is false but Statement II is true
EXPLANATION
C
Statement I:
Bank A: r = 6.2% and compounded anually
Statement II:
Let the sum of money be ‘S’
It is given,
Q2. A certain sum of money earns a simple interest of ₹ 800 over 2-year period. The same sum of money invested at the same rate of interest and same period on a compound interest basis earns an interest of ₹900 What is the sum?
A ₹1,200
B ₹1,600
C ₹2,000
D ₹2,400
EXPLANATION
B
Let the amount invested be ‘P’ and the rate of interest be ‘r’.
The answer is option B.
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