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    Given below are two statements: Statement I: The length of a tree increases at the rate of 5% every year on its previous year's length. If it is 2
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    Given below are two statements:
    Statement I: The length of a tree increases at the rate of 5% every year on its previous year's length. If it is 2.0 feet now, it will increase 0.31525 feet in three years.
    Statement II: A vendor sells an item for ₹ 56 making a profit of 40%. The cost price of the item is 40.
    In the light of the above statements, Choose the correct answer from the options given below:

    A.

    Both Statement I and Statement II are true

    B.

    Both Statement I and Statement II are false

    C.

    Statement I is true but Statement II is false

    D.

    Statement I is false but Statement II is true

    Correct option is A

    The initial length is 2 feet now
    Since there is a 5% growth
    After first-year length will be = (105/100) × 2 = 2.1 cm
    After the Second year length will be = 2.1 × (105/100) = 2.205 cm
    After the Second year length will be = 2.205 × (105/100) = 2.31525 cm
    It will increase by .31525 cm in three years.
    In the Second case
    CP = 40
    SP = 56
    Profit = 40%
    SP = 140 % × 40 = 56

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