📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Quantity I: Ravi invested Rs. 35,200 in a plan offering

      compound interest at an annual rate of 12.5%. Calculate the compound interest earned by Ravi after 3 years of investment. Quantity II: Mukul invested Rs. P at a compound interest rate of 18% per annum for 2 years and earned a total interest of Rs. 8,829. If Mukul invests Rs. (P + 4,800) for an additional 2 years at an interest rate of 25%, what will be the compound interest on this new investment?
      A Quantity I ≤ Quantity II Correct Answer Incorrect Answer
      B Quantity I ≥ Quantity II Correct Answer Incorrect Answer
      C Quantity I > Quantity II Correct Answer Incorrect Answer
      D Quantity I < Quantity II Correct Answer Incorrect Answer
      E Quantity I = Quantity II Correct Answer Incorrect Answer

      Solution

      Answer: D Quantity I: Amount of money invested by Ravi = Rs. 35,200 Rare of interest compounded = 12.5% Time for investment = 3 years So, the amount of money after 3 years will be, = 35,200 × (1 + 12.5/100)³ = 35,200 × (112.5/100)³ = 35,200 × 112.5/100 × 112.5/100 × 112.5/100 = Rs. 50,118.75 Thus, the amount of interest received by Ravi is, = 50,118.75 –35,200 =>Rs. 14,918.75 Hence, the required answer is = Rs. 14,918.75. Quantity II: Mukul gets an compound interest of = Rs. 8829 Then, according to the question, = 8829 = P [(1 + 18/100)² - 1] = 981P = 8829 × 2500 = P = Rs. 22,500 Now, the total amount of investment is = 22,500 + 4800 =>Rs. 27,300 Then, according to the question, = 27,300 × [(1 + 25/100)² - 1] = 27,300 × 9/16 =>Rs. 15,356.25 Hence, the required answer is = Rs. 15,356.25. Hence, Quantity I < Quantity II.

      Practice Next
      More Quant Miscellaneous Questions
      ask-question