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P and Q invest some amount under SI and ...

P and Q invest some amount under SI and CI, repectively but for the same period at `6%` per annum. Each gets a total amount of ₹ 65,000 at the end of 6 years Which of the following is definitely true?
Q’s initial principal is less than that of P
Q' s initial principal is equal to that of P
P's percentage earning is less than that of Q

A

(i) only

B

(ii) only

C

(iii) only

D

(i) and (iii) only

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to analyze the investments made by P and Q under Simple Interest (SI) and Compound Interest (CI) respectively. ### Step-by-Step Solution: 1. **Understanding the Interest Types**: - P invests under Simple Interest (SI). - Q invests under Compound Interest (CI). 2. **Given Information**: - Both P and Q receive a total amount of ₹65,000 after 6 years. - The rate of interest for both is 6% per annum. 3. **Formula for Simple Interest**: - The formula for the total amount (A) under Simple Interest is: \[ A = P + SI \] where \( SI = \frac{P \times r \times t}{100} \). - Here, \( P \) is the principal, \( r \) is the rate of interest, and \( t \) is the time in years. 4. **Calculating P's Principal**: - Let \( P \) be the principal amount invested by P. - The total amount after 6 years for P is: \[ 65000 = P + \frac{P \times 6 \times 6}{100} \] - Simplifying the equation: \[ 65000 = P + \frac{36P}{100} \] \[ 65000 = P + 0.36P \] \[ 65000 = 1.36P \] - Solving for \( P \): \[ P = \frac{65000}{1.36} \approx 47868.24 \] 5. **Formula for Compound Interest**: - The formula for the total amount (A) under Compound Interest is: \[ A = P(1 + \frac{r}{100})^t \] - Let \( Q \) be the principal amount invested by Q. - The total amount after 6 years for Q is: \[ 65000 = Q(1 + \frac{6}{100})^6 \] - Simplifying: \[ 65000 = Q(1.06)^6 \] - Calculating \( (1.06)^6 \): \[ (1.06)^6 \approx 1.4185 \] - Therefore: \[ 65000 = Q \times 1.4185 \] - Solving for \( Q \): \[ Q = \frac{65000}{1.4185} \approx 45763.67 \] 6. **Comparison of Principals**: - From our calculations: - P's principal \( \approx 47868.24 \) - Q's principal \( \approx 45763.67 \) - Since \( Q < P \), we conclude that Q's initial principal is less than that of P. 7. **Percentage Earnings**: - P earns simple interest, while Q earns compound interest. Given the same amount of time and interest rate, Q will always earn more than P. - Therefore, P's percentage earning is less than that of Q. ### Conclusion: - The statement that is definitely true is: **Q’s initial principal is less than that of P**.
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