Question

Quantity I: What will be the difference between compound interest and simple interest for 4 years on a principal of Rs.20480 at the rate of 25% per annum? Quantity II: Rs 8079

Q: Answer-Quantity I: What will be the difference between compound interest and simple interest for 4 years on...

Quantity I S.I 25 4 100 of 20480 S.I Rs.20480 For C.I, 25 14 P 4, A 5 P for 4 years 44 256 ratio A for 4 years 54 625 ratio Interest 625 - 256 369 ratio 256 ratio 20480 369 ratio 20480256 369 Rs.29520 Required difference Rs.9040 Quantity II Rs.8079 Hence, Quantity I Quantity II

In the question, two quantities I and II are given. You have to solve both the quantities to establish the correct relation between Quantity I and Quantity II and choose the correct option.

A Quantity I > Quantity II

B Quantity I < Quantity II

C Quantity I ≥ Quantity II

D Quantity I ≤ Quantity II

E Quantity I = Quantity II or No relation

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