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In the following question, two statements are numbered as A and B. On solving these statements, we get quantities A and B respectively. Solve both quantities and choose the correct option.Quantity A: Mr. X borrowed a sum of money from Mr. Y. He returned him Rs 4,410 in 2 years at 5 % per annum compound interest. Find a sum of money he borrowed.Quantity B: Rs. 50001. Quantity A ≥ Quantity B2. Quantity A ≤ Quantity B3. Quantity A < Quantity B4. Quantity A > Quantity B5. Quantity A = Quantity B or No relation

Answer» Correct Answer - Option 3 : Quantity A < Quantity B

Quantity A:

A = P[1 + r %]t

Calculation:

4410 = P[1 + 5 %]2 ⇒ (4,410/P) = [1 + 5 %]2

⇒ (4,410 × 100 × 100)/(105 × 105) = P

⇒ P = Rs 4,000

Quantity B: Rs. 5000

Quantity A < Quantity B



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