Multiple choice

Passage

In each of the following questions, read the given statement and compare the Quantity I and Quantity II on its basis. (only quantity is to be considered)

Quantity I : Find the interest earned after 3 years, if a person invests Rs. 52000 at C.I. at the rate of 10% per annum. Quantity II : Find the interest earned after 3 years, if a person invests Rs. 28750 at S.I. at the rate of 20% per annum.

  1. Quantity I > Quantity II

  2. Quantity I ≥ Quantity II

  3. Quantity I < Quantity II

  4. Quantity II ≥ Quantity I

  5. Quantity I = Quantity II or relation can't be established
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantity I: CI for 3 years at 10% on Rs. 52000 = 52000 × ((1 + 0.1)³ - 1) = 52000 × 0.331 = Rs. 17,212. Quantity II: SI for 3 years at 20% on Rs. 28750 = 28750 × 0.2 × 3 = Rs. 17,250. Since 17212 < 17250, Quantity I < Quantity II is correct.

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