Multiple choice

Find the correct relationship between given quantities. \ Quantity I : Find the compound interest on a sum of Rs.55000 at the rate of 15% per annum after three years.\ Quantity II : Find the simple interest on a sum of Rs.60000 at the rate 15% per annum after 5.5 years.

  1. Q1 > Q2

  2. Q1 ≥ Q2

  3. Q1 < Q2

  4. Q1 ≤ Q2

  5. Q1 = Q2 or relationship cannot be established
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Q1: CI = P[(1 + r/100)^n - 1] = 55000[(1.15)^3 - 1] = 55000[1.520875 - 1] = 55000 × 0.520875 = 28648.13. Q2: SI = P×r×t/100 = 60000×15×5.5/100 = 49500. Since 28648 < 49500, Q1 < Q2.

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