Multiple choice

Passage

Directions: Given below are two quantities named I and II. Based on the given information, you have to determine the relation between the two quantities. You are to use the given data and your knowledge of Mathematics to choose among the given options.

Mr. Daniel invested an amount of \$50,000 in two mutual fund plans - Equity Fund and SIP, in which he was offered profit of simple interest at the rates of 15% and 10%, respectively. The total interest received from these plans after 3 years is \$19,500. Quantity I: Sum of money invested in the scheme Equity Fund Quantity II: Sum of money invested in the scheme SIP

  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
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A Correct answer
Explanation

Let x be the amount in Equity Fund and (50000-x) be the amount in SIP. The interest equation is 0.15*x*3 + 0.10*(50000-x)*3 = 19500. Solving this gives 0.45x + 15000 - 0.3x = 19500, so 0.15x = 4500, x = 30000. Equity Fund = 30000, SIP = 20000. Thus, Quantity I > Quantity II.

AI explanation

Let the sum invested in the Equity Fund be x, making the SIP investment (50000 - x), so the total interest equation is (x multiplied by 15 multiplied by 3 divided by 100) plus ((50000 - x) multiplied by 10 multiplied by 3 divided by 100) equals 19500. Solving this gives 0.45x + 15000 - 0.30x = 19500, which simplifies to 0.15x = 4500 and x = 30000. The Equity Fund investment (Quantity I) is 30000 and the SIP investment (Quantity II) is 20000, meaning Quantity I > Quantity II.

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