An amount of Rs P P P is invested in scheme A on compound interest at a rate of 20% p.a. and the same amount is invested in scheme B on simple interes...

Question

An amount of Rs PP is invested in scheme A on compound interest at a rate of 20% p.a. and the same amount is invested in scheme B on simple interest at a rate of 20% p.a. At the end of two years, the difference between the interest received from both schemes is Rs 260.

Quantity I: If Rs 3P4\frac{3P}{4} is invested at a rate of 6% p.a. for four years in simple interest, then find the interest received.

Quantity II: Rs 1100

Compare Quantity I and Quantity II:

Options

A.

(a) Quantity I > Quantity II

B.

(b) Quantity I < Quantity II

C.

(c) Quantity I \geq Quantity II

D.

(d) Quantity I \leq Quantity II

E.

(e) Quantity I = Quantity II or no relation

compound interestsimple interestcomparisoninterest calculation

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