Question 53

Simple interest on a given amount is always less than or equal to the compound interest on the same amount for the same time period and at the same rate of interest per annum.

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Solution

True
For 1 yr, the simple interest and compound interest for same amount on same rate of interest are equal.
But for 2 yr, the simple interest is less than the compound interest for same amount on same rate of interest.

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Standard VIII Mathematics

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Question 53 Simple interest on a given amount is always less than or equal to the compound interest on the same amount for the same time period and at the same rate of interest per annum.

True For 1 yr, the simple interest and compound interest for same amount on same rate of interest are equal. But for 2 yr, the simple interest is less than the compound interest for same amount on same rate of interest.

Question 53

Simple interest on a given amount is always less than or equal to the compound interest on the same amount for the same time period and at the same rate of interest per annum.

True
For 1 yr, the simple interest and compound interest for same amount on same rate of interest are equal.
But for 2 yr, the simple interest is less than the compound interest for same amount on same rate of interest.