Multiple choice

Given below are two quantities named I and II. Based on the given data, you have to determine the relation between them and mark the answer Quantity I- the difference between SI and CI compounded annually on a certain sum of money for 2 years at 8% pa is Rs192. Find the principle amount. Quantity II- A sum fetched a total simple interest of Rs 9000 at the rate of 6% pa in 5 years. What is the sum?

  1. Quantity I > Quantity II

  2. Quantity I< Quantity II

  3. Quantity I ≥ Quantity II

  4. Quantity I ≤ Quantity II

  5. Quantity I = Quantity II or relation can not be established
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Quantity I: For 2 years at 8%, CI - SI = P(1.08² - 1) - P(0.08 × 2) = P(1.1664 - 1 - 0.16) = 0.0064P = 192. So P = 192/0.0064 = 30000. Quantity II: SI = P × R × T = P × 0.06 × 5 = 9000, so P = 9000/0.3 = 30000. Both quantities equal 30000. Option E stating they're equal is correct.

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