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 of these quantities.

Quantity I: The present worth of Rs. 132 due in 2 years at 5% simple interest per year. Quantity II: The present worth of Rs. 260 due in 2 years at 2% simple interest per year.

  1. Quantity I ≤ Quantity II

  2. Quantity I ≥ Quantity II

  3. Quantity I < Quantity II

  4. Quantity I > Quantity II

  5. Quantity I = Quantity II, or No relation
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

Using the present worth formula PW = Amount * 100 / (100 + R * T), we calculate Quantity I as 132 * 100 / (100 + 5 * 2) = 13200 / 110 = 120. For Quantity II, the present worth is 260 * 100 / (100 + 2 * 2) = 26000 / 104 = 250. Comparing the two calculated present worths, 120 is less than 250, meaning Quantity I < Quantity II.

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