Multiple choice

Each question below contains a statement followed by Quantity I and Quantity II. Find both to find the relationship among them. Mark your answer accordingly. $Quantity I: Suresh took a loan from the bank at 12% p.a simple interest. After 3 years he had to pay back Rs. 16,200 as interest. Find the loan taken by Suresh from the bank. Quantity II: Amount after 2 years for a principal of Rs 35,000 at an interest rate of 10% compounded annually.$

  1. Quantity I > Quantity II

  2. Quantity I ≥ Quantity II

  3. Quantity II > Quantity I

  4. Quantity II ≥ Quantity I

  5. Quantity I = Quantity II or Relation cannot be established
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Quantity I: Simple Interest = P × R × T / 100. 16200 = P × 12 × 3 / 100, so P = 16200 × 100 / 36 = Rs 45000. Quantity II: Compound Interest Amount = 35000 × (1 + 10/100)² = 35000 × 1.21 = Rs 42350. Since 45000 > 42350, Quantity I > Quantity II, so Option A is correct.

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