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    Question

    In the question below there are four statements followed by three conclusions I, II and III. You have to take the three given statements to be true even if they seem to be at variance from commonly known facts and then decide which of the given conclusions logically follows from the four statements disregarding commonly known facts.

    Statements: Some cost are amount. At

    least some amount are interest. 100% interest are principle. Only cost are compound. Conclusions: I. Some amount are compound. II. Some principle are amount. III. Some cost are principle.
    A Both conclusion I and conclusion III follow. Correct Answer Incorrect Answer
    B Only conclusion I follows Correct Answer Incorrect Answer
    C Neither conclusion I nor conclusion II follows Correct Answer Incorrect Answer
    D Only conclusion II follows Correct Answer Incorrect Answer
    E All conclusions I, II and III follow Correct Answer Incorrect Answer

    Solution

    Only cost are compound → All compound are cost and compound cannot have any positive relation with any element. Hence conclusion I does not follow. At least some amount are interest (I) + 100% interest are principle (A) → Some amount are principle (I) → Conversion → Some principle are amount (I). Hence conclusion II follows. Some cost are amount (I) + At least some amount are interest (I) → No conclusion. Hence conclusion III does not follow.

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