Question 1

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.


Statement I:

Bank A: r = 6.2% and compounded anually

Compound interest at the end of an year = $$P\left(1+\frac{6.2}{100}\right)-P=\frac{6.2P}{100}$$

Bank B: r = 6% and compounded semi-anually

C.I = $$P\left(1+\frac{3}{100}\right)^2-P=\frac{P\left(6.09\right)}{100}$$

Interest is less in bank B.

Therefore, statement I is correct.

Statement II:

Let the sum of money be 'S'

It is given,





Therefore, P = 4

Statement II is incorrect.

The answer is option C.

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