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    Question

    For every question, evaluate the three provided quantities, compute their respective values, and analyze how they compare to each other.

    Quantity I: Akash has

    ₹12,400. He allocates 40% of this amount to a Systematic Investment Plan (SIP) that offers a 10% annual simple interest rate. The remaining amount is invested in another SIP with a 5% annual simple interest rate. Determine the total interest Akash will earn after 5 years from both investments. Quantity II: ₹4,852.85 Quantity III: An individual invests ₹1,200 at an annual compound interest rate of 20% for 2 years and ₹6,000 at an annual compound interest rate of 25% for 2 years. Find the total interest earned by the individual from these investments.
    A Quantity I > Quantity II > Quantity Ill Correct Answer Incorrect Answer
    B Quantity I > Quantity II = Quantity Ill Correct Answer Incorrect Answer
    C Quantity I < Quantity II < Quantity Ill Correct Answer Incorrect Answer
    D Quantity I < Quantity II = Quantity Ill Correct Answer Incorrect Answer
    E Quantity I < Quantity II > Quantity Ill Correct Answer Incorrect Answer

    Solution

    ATQ, Quantity I: Total interest earned = [12400×40/100]×5×10/100 + [12400×60/100]×5×5/100 =Rs.4340 Quantity II: Rs.4852.5 Quantity III: Total interest earned 1200×[1+20/100] +6000×[1+25/100] -7200 = Rs.3903 Quantity I < Quantity II > Quantity III

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