Multiple choice

Passage

Directions: The following question consists of two quantities, Quantity I and Quantity II. You are to compare the two quantities and find the correct relationship between both the quantities.

Quantity I: If a sum of money at simple interest amounts to Rs. 750 in 3 years and to Rs. 762 in 4 years, then the sum is: Quantity II: If a sum of money at simple interest amounts to Rs. 740 in 2 years and to Rs. 760 in 3 years, then the sum is:

  1. Quantity II > Quantity I

  2. Quantity II ≥ Quantity I

  3. Quantity II < Quantity I

  4. Quantity Il ≤ Quantity I

  5. Quantity Il = Quantity I, or No relation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For Quantity I, the interest for 1 year is Rs. 762 - Rs. 750 = Rs. 12, so the principal is Rs. 750 - (3 * 12) = Rs. 714. For Quantity II, the interest for 1 year is Rs. 760 - Rs. 740 = Rs. 20, so the principal is Rs. 740 - (2 * 20) = Rs. 700. Comparing the two, Quantity II (700) is less than Quantity I (714).

AI explanation

Using the simple interest method, the interest for one year in Quantity I is the difference between the amounts after 4 and 3 years, which is 762 - 750 = 12. The principal sum is found by subtracting three years of interest from the amount, giving 750 - 3 * 12 = 714. In Quantity II, the yearly interest is 760 - 740 = 20, so the principal sum is 740 - 2 * 20 = 700. Therefore, Quantity II < Quantity I.

Keep practicing — related questions