Directions (49 - 53): In each of the following questions, read the given statements and compare the two given quantities and give answer.
Quantity I: A women deposited Rs. 2250 at 20% per annum compound interest for 2 years. Find the difference between the amount of interest earned on 1st year and on 2nd year.
Quantity II: A man deposited Rs. 600 at 6% simple interest for 3 years. Find the interest earned by the man.
Quantity-I = Quantity-II or No relation
Quantity-I $\le$ Quantity-II
Quantity-I $\ge$ Quantity-II
Solution
Quantity I:
Interest earned on 1st year $= \dfrac {(2250 \times 20 \times 1)}{100} =$ Rs. 450
Interest earned on 2nd year $= \dfrac{ \left\{(2250 + 450) \times 20 \times 1 \right\}} {100}$ = Rs. 540
Required difference =$ 540 – 450 $= Rs. 90
Quantity II:
Interest earned by the man $= \dfrac {(600 \times 6 \times 3)}{100}$ = Rs. 108
So, Quantity-I < Quantity-II