Multiple choice

Find the correct relationship between given quantities. (\text{Quantity I:}) Two equal amounts are invested for 2 years at 9% per annum by Virat, one at simple interest and the other at compound interest. If the difference in the interests for the two years on the two amounts is 100, then what is the amount? (\text{Quantity II:}) Two equal amounts are invested for 2 years at 11% per annum by Virat, one at simple interest and the other at compound interest. If the difference in the interests for the two years on the two amounts is 97, then what is the amount?

  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: At 9% for 2 years, compound-simple difference = P×0.09×0.09 = P×0.0081. Given difference = 100, so P = 100/0.0081 ≈ 12,345.68. Quantity II: At 11% for 2 years, difference = P×0.11×0.11 = P×0.0121. Given difference = 97, so P = 97/0.0121 ≈ 8,016.53. Therefore: Quantity I (≈12,346) > Quantity II (≈8,017), confirming option A.

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