Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Quantitative Aptitude Interest Simple and Compound Both
Given below are two statements
Statement I: Compound interest involves the reinvestment of the earned interest, which in future years also earns interest
Statement II: Simple interest is the amount earned or paid on a sum of compound interest and principal amount
In light of the above statement, choose the most appropriate answer from the option given below
1
Both statement I and statement II are true
2
Both statement I and statement II are false
3
Statement I is correct but statement II is false
4
Statement I is incorrect but statement II is true