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- what sum will fetch a simple interest of Rs 25410 in five and a half years at 6% pa rate of interest. Quantity II- A sum amounts to 90000 after 3 years at compound interest being compounded annually. The amount becomes 112500 the subsequent year. At the same rate of interest Rs 60000 after a year will be

  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
A Correct answer
Explanation

Quantity I: Simple interest formula gives principal P = (25410 × 100) / (6 × 5.5) = 77000. Quantity II: From compound interest data, rate = 25% (112500/90000 - 1). Rs 60000 at 25% for 1 year becomes 60000 × 1.25 = 75000. Since 77000 > 75000, Quantity I > Quantity II.

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