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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: A sum of money becomes (5/4) of itself in one year at a certain rate of simple interest. Find the rate of interest per annum.Quantity B: 25%1. 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 5 : Quantity A = Quantity B or No relation

Quantity A:

R = (Interest × 100)/(Principal × Time)

Let the principal be Rs. 100

Amount = ( 5/4) of Principal

∴ Amount = Rs. 125

Simple interest = Amount – Principal

= Rs. 125 – Rs. 100

= Rs. 25

Rate = (25 × 100)/(100 × 1)

= 25%

Quantity B: 25%

Quantity A = Quantity B


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