In the given questions, two quantities are given, one as Quantity I and another as Quantity II. You have to determine relationship between two quantities and choose the appropriate option.
a: If quantity I ≥ quantity II
b: If quantity I > quantity II
c: If quantity I < quantity II
d: If quantity I = quantity II or the relationship cannot be established from the information that is given
e: If quantity quantity II
Ram invested P in scheme A and 2P in scheme B, for two years each. Scheme A offers simple interest p.a. Scheme B offers compound interest (compounded annually) at the rate of 10% p.a. Respective ratio between the interest earned from scheme A and that earned from scheme B was 8 : 21.
Quantity :
I. Rate of interest offered by scheme A.
II. Rate of interest offered by scheme C (simple interest p.a.), when 1,600/- is invested for 3 years earns an interest of 384/-.
$$S.I. = \frac{P \times R \times T}{100}$$
$$C.I. = P [(1 + \frac{R}{100})^T - 1]$$
Rate of interest for scheme B = 10 %
Time period in each scheme = 2 years
Acc to ques,
=> $$\frac{\frac{P \times R \times 2}{100}}{2P [(1 + \frac{10}{100})^2 - 1]} = \frac{8}{21}$$
=> $$\frac{\frac{R}{50}}{\frac{21}{50}} = \frac{8}{21}$$
=> $$\frac{R}{21} = \frac{8}{21}$$
=> $$R = 8 \%$$
Quantity I = 8 %
Quantity II : $$384 = \frac{1600 \times R \times 3}{100}$$
=> $$R = \frac{384}{48} = 8 \%$$
$$\therefore$$ Quantity I = Quantity II
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