Multiple choice

Directions: In the following question, we have two quantities given. Compare these quantities and answer accordingly with the following given options. (a) Quantity I > Quantity II (b) Quantity I < Quantity II (c) Quantity I ≥ Quantity II (d) Quantity I ≤ Quantity II (e) Quantity I = Quantity II or No relation Quantity I: A sum of money amounts to Rs. 6500 at simple interest of R% for 3 years and the same sum of money amounts Rs. 7000 at simple interest of R% for 4 years. The principal sum of money. Quantity II: Rs. 4000

  1. a

  2. b

  3. c

  4. d

  5. e
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A Correct answer
Explanation

Simple Interest formula: A = P + (P*R*T)/100. 6500 = P + (P*R*3)/100 and 7000 = P + (P*R*4)/100. Subtracting: 500 = (P*R)/100. Substitute back: 6500 = P + 3*500 = P + 1500 -> P = 5000. Quantity I = 5000, Quantity II = 4000. So I > II.

AI explanation

The interest for one year is the difference between the 4-year and 3-year amounts, which is 7000 - 6500 = 500. The total interest for 3 years is 3 * 500 = 1500, making the principal 6500 - 1500 = 5000. Since Rs. 5000 is greater than Rs. 4000, Quantity I is greater than Quantity II.

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