Multiple choice

Directions: You are given two quantities, Quantity I and Quantity II. Compare the two quantities and choose the correct option accordingly. Quantity I: Compound interest earned on a sum Rs. 8000 at 8% p.a. for 2 years Quantity II: Compound interest earned on a sum Rs. 7000 at 9% p.a. for 2 years

  1. Quantity I > Quantity II

  2. Quantity I < Quantity II

  3. Quantity I = Quantity II

  4. No relation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Quantity I: 8000 * (1.08^2 - 1) = 8000 * 0.1664 = 1331.2. Quantity II: 7000 * (1.09^2 - 1) = 7000 * 0.1881 = 1316.7. Quantity I > Quantity II.

AI explanation

Using the compound interest formula for two years, the interest for Quantity I is 8000 * (1 + 8/100)^2 - 8000, which equals 8000 * (1.08)^2 - 8000 = 9331.2 - 8000 = 1331.2. For Quantity II, the interest is 7000 * (1 + 9/100)^2 - 7000, which equals 7000 * (1.09)^2 - 7000 = 8316.7 - 7000 = 1316.7. Since 1331.2 is greater than 1316.7, Quantity I > Quantity II.

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