Given below are two quantities named A & B. Based on the given information, you have to determine the relation between the two quantities. You should use the given data and your knowledge of Mathematics to choose between the possible answers. Quantity A: A sum of Rs. 10,000 is lent partly at 8% and remaining at 10% per annum. If the yearly interest on the average is 9.2%, what is amount that is been lent at 10%? Quantity B: A sum of Rs. 4000 amounts to Rs. 4800 in 4 years. What will it amount to if the rate of interest is increased by 2%?
Given below are two quantities named A & B. Based on the given information, you have to determine the relation between the two quantities. You should use the given data and your knowledge of Mathematics to choose between the possible answers. Quantity A: A sum of Rs. 10,000 is lent partly at 8% and remaining at 10% per annum. If the yearly interest on the average is 9.2%, what is amount that is been lent at 10%? Quantity B: A sum of Rs. 4000 amounts to Rs. 4800 in 4 years. What will it amount to if the rate of interest is increased by 2%? Correct Answer Quantity A > Quantity B
Quantity A:
Let Rs. x is lent at 8% then Rs. (10000 - x) would have been lent at 10%.
Since the average interest is 9.2%;
10000 × 9.2 = x × 8 + (10000 - x) × 10
⇒ 2x = 8000
⇒ x = 4000
∴ Sum of money lent at 10% = 1000 - 4000 = Rs. 6000
Quantity B:
Initial interest = 4800 - 4000 = Rs. 800
∴ Interest at 2% for 4 years = (4000 × 2 × 4)/100 = Rs. 320
Increased interest = 800 + 320 = Rs. 1120
Increased amount (when rate of interest is increased by 2%) = 4000 + 1120 = Rs. 5120
∴ Quantity A > Quantity B