[Solved] Statement: "If you invest early, you will earn higher returns."Assumptions:1️⃣ Markets will keep rising steadily in the future.2️⃣ People want to grow their wealth over time.... | Reasoning Ability

Reasoning Ability - Statement & Assumption

Statement: "If you invest early, you will earn higher returns."
Assumptions:
1️⃣ Markets will keep rising steadily in the future.
2️⃣ People want to grow their wealth over time.
Which assumption(s) is/are implicit?

AOnly 1

BBoth 1 and 2

COnly 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Parse the forecast
The statement claims early investing yields higher returns.
Step 2: Test Assumption 1
The claim rests on time/compounding, not strictly on markets always rising; assuming constant market rises is stronger than required and not implicit.
Step 3: Test Assumption 2
The advice presumes people want to grow wealth — implicit.
Final Answer:
Only 2 is implicit. → Option C
Quick Check:
If investors didn’t care about returns, the advice would be pointless; assuming perpetual market rises is unnecessary and not implied ✅

Quick Trick: Distinguish a necessary mechanism (time/compound effect) from an extra, stronger claim (markets always rise).

Common Mistakes:

Mistaking a strong, unnecessary background claim as being implicitly required.

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Which assumption(s) is/are implicit?

Step 1: Parse the forecast

Step 2: Test Assumption 1

Step 3: Test Assumption 2

Final Answer:

Quick Check:

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