Assertion and reason

Exercise and reference answers

Questions

1. Reason

   Each year's interest is worked out on a base that has already grown.

   Verdict

   Both are true; the reason explains the assertion.

   Assertion

   Compound interest exceeds simple interest after the first year.

2. Reason

   Discount is defined as a reduction given on the marked price.

   Verdict

   Both are true; the reason explains the assertion.

   Assertion

   Discount must be worked out on the marked price.

3. Reason

   They are added into the cost price, so the gap to the selling price narrows.

   Verdict

   Both are true; the reason explains the assertion.

   Assertion

   Overhead expenses reduce the profit on a sale.

4. Reason

   Sales tax is charged by the government on the sale of an item.

   Verdict

   The assertion is false and the reason is true.

   Assertion

   Sales tax lowers the amount the customer pays.

Explanation