Question
Easy

If a is simple interest on b and b is simple interest on c. Rate of interest and time is the same in both the cases, then which of the following is correct ?

1
$a^2 = bc$
2
$b^2 = ca$
3
$c^2 = ab$
4
abc = 1
Question Details
Time to Solve: 12
Exam: HTET
Level/Paper: Level 2
Chapter: Finance
Topic: Simple & Compound Interest
Correct Answer
Option B
Explanation

To understand why Option 2 ($b^2 = ca$) is the correct answer, let's break down the problem using the principles of simple interest. ### Explanation for Option 2: 1. Simple Interest Formula: The formula for simple interest is given by: \[ \text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \] where \( P \) is the principal amount, \( R \) is the rate of interest per annum, and…Read More