Question
Which of the following pair of symbols will define the
relation between Quantity I and Quantity II Quantity I: The simple interest on a sum of ₹10,000 for 3 years at 8% per annum. Quantity II: The compound interest on ₹8,000 for 2 years at 10% per annum, compounded annually.Solution
For Quantity I: Simple interest = (10,000 × 8 × 3) / 100 = ₹2,400 For Quantity II: Compound interest = 8,000 × (1 + 10/100)² - 8,000 = 8,000 × (1.21 - 1) = ₹1,680 Answer: A (Quantity I > Quantity II)
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