Multiple choice

Directions: You are given two quantities, Quantity I and Quantity II. Compare the two quantities and choose the correct option accordingly. Two friends Mr. X and Mr. Y invested some money in securities for 2 years. Mr. X got a return of 13.5% on an amount Rs. 18,000 compounded annually. Mr. Y got a return of 8% on an amount Rs. 30,000 compounded annually. Quantity I: Interest of Mr. X Quantity II: Interest of Mr. Y

  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: 18000 * (1.135^2 - 1) = 18000 * 0.288225 = 5188.05. Quantity II: 30000 * (1.08^2 - 1) = 30000 * 0.1664 = 4992. Quantity I > Quantity II.

AI explanation

For Mr. X, the compound interest is 18000 * (1 + 13.5/100)^2 - 18000, which equals 18000 * 1.288225 - 18000 = 5188.05. For Mr. Y, the compound interest is 30000 * (1 + 8/100)^2 - 30000, which equals 30000 * 1.1664 - 30000 = 4992. Since 5188.05 is greater than 4992, Quantity I > Quantity II.

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