Sum = (5000 × 100)/(10 × 2) = Rs. 25,000 Quantity I: CI = 25,000(1 + 10/100)² - 25,000 ⇒ 25,000 × 110/100× 110/100 – 25,000 ⇒ 30,250 – 25,000 = Rs. 5,250 Quantity II: CI = 25,000(1 + 8/100)³ - 25,000 ⇒ 25,000 × 108/100× 108/100 × 108/100 - 25,000 ⇒ 31,492.8 – 25,000 = Rs. 6,492.8 ∴ Quantity I < Quantity II.
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