Directions: Read the line graph carefully and answer the following qu...
For P in 2019,
Income = Rs. 40000
Expenditure = 40000 × 4/5 = Rs. 32000
⇒ Savings = 40000 – 32000 = Rs. 8000
For P in 2020,
Income = Rs. 50000
Expenditure = 50000 × 3/5 = Rs. 30000
⇒ Saving of P in 2020 = 50000 – 30000 = Rs. 20000
Similarly, we can find the expenditure and saving of Q, R, S, and T in two years
We know that
Compound interest = P × (1 + r/100) n – P
Simple interest = (PRT)/100
By Quantity I:
Total saving of P = Rs. 8000 + Rs. 20000 = Rs. 28000
⇒ Simple interest = (28000 × 15 × 3)/100 = Rs. 12600
By Quantity II:
Total saving of S = Rs. 10000 + Rs. 10000 = Rs. 20000
⇒ Compound interest = 20000 × (1 + 12/100) 2 – 20000 = Rs. 5088
∴ Quantity I > Quantity II