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Question
For fixed time period and rate of interest, the simple interest is directly proportional to the principal.
Options
True
False
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Solution
This statement is True.
Explanation:
For fixed time period (T) and rate of interest (R), the simple interest is directly proportional to the principal.
We know that,
`SI = (P xx R xx T)/100`
⇒ `(SI)/P = (R xx T)/100`
= Constant (as R and T are constants)
∴ Simple interest is directly proportional to the principal.
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