Quantity B: If Rs. 9000 amounts to Rs. 11979 in 3 years compounded ann

1.	Quantity B: If Rs. 9000 amounts to Rs. 11979 in 3 years compounded annually. Find the rate of interest per annum.1). Quantity A > Quantity B2). Quantity A < Quantity B3). Quantity A ≥ Quantity B4). Quantity A ≤ Quantity B
Answer» Quantity A: Let the principal = P Amount = (9/8)P Simple interest = (9/8)P – P Simple interest = (1/8)P N = 5 Using simple interest FORMULA, (1/8)P = (P × R × 5)/100 R = 2.5% The rate of interest is 2.5% per annum. Quantity B: Let P = principal, R = rate of interest and N = time period Amount = P(1 + R/100)^N 11979 = 9000(1 + R/100)³ 11979 = (9/1000) × (R + 100)³ (R + 100)³ = 1331000 Taking cube root, R + 100 = 110 R = 10 Rate of interest is 10% per annum. From above SOLUTION, Relation between Quantity A < Quantity B is established.

Quantity B: If Rs. 9000 amounts to Rs. 11979 in 3 years compounded annually. Find the rate of interest per annum.1). Quantity A > Quantity B2). Quantity A < Quantity B3). Quantity A ≥ Quantity B4). Quantity A ≤ Quantity B

Answer»

Quantity A:

Let the principal = P

Amount = (9/8)P

Simple interest = (9/8)P – P

Simple interest = (1/8)P

N = 5

Using simple interest FORMULA,

(1/8)P = (P × R × 5)/100

R = 2.5%

The rate of interest is 2.5% per annum.

Quantity B:

Let P = principal, R = rate of interest and N = time period

Amount = P(1 + R/100)^N

11979 = 9000(1 + R/100)³

11979 = (9/1000) × (R + 100)³

(R + 100)³ = 1331000

Taking cube root,

R + 100 = 110

R = 10

Rate of interest is 10% per annum.

From above SOLUTION,

Relation between Quantity A < Quantity B is established.

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