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Question
Mr. David deposited ₹ 100 per month in a cumulative deposit account for 1 year at the rate of 6% р.a.
Statement (1): Qualifying sum of his whole deposit = ₹ 7,800.
Statement (2): Let a sum of P be deposited every month in a bank for n months. If the rate of interest be r% p.a., then interest on the whole deposit = `P xx (n (n + 1))/12 xx r/100`.
Options
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.
MCQ
Assertion and Reasoning
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Solution
Statement 1 is true, and statement 2 is false.
Explanation:
Qualifying sum:
₹ 100 × (12 + 11 + 10 + ... + 1)
= ₹ 100 × 78
= ₹ 7,800
The correct formula is:
Interest = `P × [(n(n + 1)) /(2 xx 12)] × r / 100`
Thus. statement 1 is true, and statement 2 is false.
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