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ExamsSSC CGL (Prelims)General

Consider the following statements regarding simple interest: 1. The simple interest on Rs. 8,000 for 3 years at 5% per annum is Rs. 1,200. 2. If a sum of money doubles in 10 years at simple interest, then it will become 1.5 times in 6 years. 3. The simple interest rate required for an amount to become 2.5 times in 5 years is 30%. Of these statements, which are correct?

  1. Only 1 is correct
  2. 1 and 2 are correct
  3. 1 and 3 are correct
  4. All 1, 2, and 3 are correct

Correct answer: 1 and 3 are correct

Solution

Statement 1 is correct because SI = \(8000 \times 5 \times 3 /100 = 1200\). Statement 2 is false because if money doubles in 10 years, then SI in 10 years equals principal, so in 6 years it becomes 1.6 times, not 1.5 times. Statement 3 is correct because to become 2.5 times in 5 years, SI = 1.5P, so rate = \(1.5 \times 100 / 5 = 30\%\).

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