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