CMAT Exam 2023 Shift 2 Solved Paper

Question : 1 of 100

Marks: +1, -0

Given below are two statements :
Statement I: A savings account at Bank A pays

6.2 \%

interest, compounded annually. Bank B's savings account pays

6 \%

compounded semi-annually. Bank

B

is paying less total interest each year.
Statement II: A sum of money at a certain rate of compound interest doubles in 3 years. In 9 years, it will be

P

times original principal. Then

P=9

.
In the light of the above statements, choose the correct answer from the options given below.

Both Statement I and Statement II are true
Both Statement I and Statement II are false
Statement I is true but Statement II is false
Statement I is false but Statement II is true

Validate

Solution:

Statement I:
Bank

A: r=6.2 \%

and compounded anually
Compound interest at the end of an year

=P (1+\;{6.2}/{100}) -P=\;{6.2 P}/{100}

Bank

B: r=6 \%

and compounded semi-anually

\;\text " C.I "\;=P (1+\;{3}/{100}) ^2-P=\;{P(6.09)}/{100}

Interest is less in bank B.
Therefore, statement I is correct.
Statement II:
Let the sum of money be '

S

'
It is given,

\;S (1+\;{r}/{100}) ^3=2 S

\; (1+\;{r}/{100}) ^3=2

\; (1+\;{r}/{100}) ^9=4

\;S (1+\;{r}/{100}) ^9=4 S

Therefore,

P=4

Statement II is incorrect.

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