Given below are two statements. In the light of the above statements, choose the correct answer from the options given below.

Statement I:A tree of 2.0 feet growing 5 percent a year on its previous length increases by 0.31525 feet in three years.

Statement II:An item sold for Rs. 56 at a 40 percent profit has a cost price of Rs. 40.

ABoth Statement I and Statement II are true ✓ Correct

BBoth Statement I and Statement II are false

CStatement I is true but Statement II is false

DStatement I is false but Statement II is true

Correct answer: (A) Both Statement I and Statement II are true

Explanation

Both statements check out numerically.

Tree: 2.0 x 1.05 x 1.05 x 1.05 = 2.31525 feet.

Growth = 2.31525 - 2.0 = 0.31525 feet, confirming Statement 1.

Item: cost price = 56 / 1.40 = 40.

Rs. 40 matches Statement 2, so both hold.

Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.