Assertion and reason: simple interest

Exercise and reference answers

Questions

1. Reason

   Each year's interest is identical because the base never changes.

   Verdict

   Both are true; the reason explains the assertion.

   Assertion

   Simple interest over five years is five times one year's.

2. Reason

   Each year's fixed interest is added on top of what came before.

   Verdict

   Both are true; the reason explains the assertion.

   Assertion

   The amount rises even though the interest is constant.

3. Reason

   Amount equals principal plus interest.

   Verdict

   The assertion is false and the reason is true.

   Assertion

   The principal grows under simple interest.

Explanation