Given below are two quantities named A and B. Based on the given information, you have to determine the relationship between the two quantities. You should use the given data and knowledge of Mathematics to choose between the possible answers. Quantity A: A mobile is sold for Rs. 15000 in cash. There is an installment plan under which customer had to make a down payment of Rs. 8000 and an installment of Rs. 9000 after a month. Find the rate of interest for the installment plan. Quantity B: A mobile is sold for Rs. 20000 in cash. There is an installment plan under which customer had to make a down payment of Rs. 10000 and an installment of Rs.11000 after a month. Find the rate of interest for the installment plan.?

Question

Given below are two quantities named A and B. Based on the given information, you have to determine the relationship between the two quantities. You should use the given data and knowledge of Mathematics to choose between the possible answers. Quantity A: A mobile is sold for Rs. 15000 in cash. There is an installment plan under which customer had to make a down payment of Rs. 8000 and an installment of Rs. 9000 after a month. Find the rate of interest for the installment plan. Quantity B: A mobile is sold for Rs. 20000 in cash. There is an installment plan under which customer had to make a down payment of Rs. 10000 and an installment of Rs.11000 after a month. Find the rate of interest for the installment plan.?

Quantity A > Quantity B
Quantity A ≥ Quantity B
Quantity B > Quantity A
Quantity B ≥ Quantity A
Quantity A = Quantity B or Relation cannot be established

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-04T04:29:57+06:00

Option 1 : Quantity A > Quantity B

Quantity A:

Future value of the installment = 9000

Present value of the installment = 15000 - 8000 = 7000

Interest charged for the installment = future value - present value = 9000 - 7000 =2000

We know

Interest = PRT/100

P = 7000 and T = 1/12

⇒ 2000 = (7000 × R) / (100 × 12)

⇒ 2000/7000 = R/1200

⇒ R = 2 × 1200/7

∴ Rate of interest for the installment plan is 342.85%

Quantity B:

Future value of the installment = 11000

Present value of the installment = 20000 - 10000 = 10000

⇒ Interest charged for the installment = future value - present value = 11000 - 10000 = 1000

We know

Interest = PRT/100

P= 10000 and T = 1/12

⇒ 1000 = (10000 × R) / (100 × 12)

⇒ 1000/10000 = R/1200

⇒ R = 120%

∴ Rate of interest for the installment plan is 120%

We can see that

∴ Quantity A > Quantity B