Exams › SSC CGL (Prelims) › General

Suppose ₹P is invested, and after 3 years at 10% simple interest, it yields ₹Q interest. If ₹Q is then invested for 3 years at 10% simple interest, it yields ₹R interest. Which of the following is true?

1. Q = P + R
2. Q^2 = PR
3. P = Q + R
4. P^2 = QR

Correct answer: Q^2 = PR

Solution

For 3 years at 10% simple interest, interest equals 30% of principal. So Q = 0.3P. Then R = 0.3Q. Substituting gives R = 0.09P, hence Q^2 = PR.

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