Two are true, one is not

Exercise and reference answers

Questions

1. False statement

   It is worked out on last year's amount

   Statements

   1. Simple interest uses the original principal
   2. It is the same every year
   3. It is worked out on last year's amount

2. False statement

   Amount equals principal minus interest

   Statements

   1. Amount equals principal minus interest
   2. Amount equals principal plus interest
   3. Rate is quoted per annum

3. False statement

   Interest is charged only by shops

   Statements

   1. Banks pay interest on deposits
   2. Interest is charged only by shops
   3. Borrowers pay interest on loans

Explanation