Question

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

1. C > S
2. C = S
3. C < S

Then

पर्याय

• only (i) is correct.

• either (i) or (ii) is correct.

• either (ii) or (iii) is correct.

• only (iii) is correct.

Answer 1

Only C > S.

Explanation:

Let the principal (P) = Rs. 100

Rate of interest (R) = 100% and time period (T) = 2 yr

Then, simple interest = `(P xx R xx T)/100`

= `(100 xx 10 xx 2)/100`

= ₹ 20

We know that,

`A = P(1 + R/100)^T`

= `100(1 + 10/100)^2`

= `100 xx 11/10 xx 11/10`

= ₹ 21

∴ Compound interest, CI = A – P

= ₹ 121 – ₹ 100

= ₹ 21

So, C > S

Hence, C > S