Question
The following questions each present two quantities,
Quantity I and Quantity II. Compare the values of the two quantities and determine their relationship. Quantity I: P puts ₹25,000 into a SIP that gives 20% annual compound interest for 2 years. After the completion of 2 years, he reinvests the matured amount into another SIP that offers 10% simple interest per year for 1 more year. Calculate the total interest he earns from these SIPs over the span of 3 years. Quantity II: R and Q begin a business together. R’s capital is 20% higher than Q’s, but R stays invested for 2 months less, while Q keeps the investment for 6 months. At the end of 6 months, they make a total profit of ₹45,000. Determine how much of this profit goes to R.Solution
Quantity I: Principal = Rs.25,000 C I= Amount(A) - Principal(P) A = P×(1+r/100)t 25000 × 6/5 × 6/5 = Rs.36,000 CI = 36,000-25000 = Rs.11000 After 2 years he invested at SI in another SIP, SI =36000 × 10/100 = Rs.3600 Total interest =11000 + 3600 = Rs.14,600 Quantity II: Profit share of R = (6x×4) = 24x Profit share of Q = ( 5x×6) = 30x Profit ratio of R and Q = 24x:30x = 4:5 Profit amount of R = (45000/9)×4 = Rs.20,000
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