Multiple choice

Find the correct relationship between given quantities. Quantity I: Ram invested a sum of Rs. 52,000 in a scheme offering compound interest at the rate of 10% per annum. Find the interest earned by him after 3 years. Quantity II: Rahim invested Rs. 28,750 in a scheme offering simple interest at the rate of 20% per annum. Find the interest earned by him after 3 years.

  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 No relation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quantity I: CI = 52000[(1 + 10/100)^3 - 1] = 52000[1.331 - 1] = 52000 × 0.331 = Rs. 17,212. Quantity II: SI = 28750 × 20 × 3/100 = Rs. 17,250. Since 17,212 < 17,250, Quantity I < Quantity II, making option B correct.

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