Comparing Quantities · 5 sample questions from the school syllabus. Try each one, then open the answer and the worked solution.
2. Which of the following situations does NOT use the compound interest growth pattern A = P(1+100R)T?
- AA fixed bank fee of ₹100 charged once a year
- BBacteria doubling and increasing by a fixed percentage each hour
- CPopulation of a city increasing by a fixed percent per year
- DValue of a deposit growing at a fixed annual interest rate
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Answer: A) A fixed bank fee of ₹100 charged once a year
A fixed amount added each time is linear (like simple interest), not a fixed percentage of a growing base, so it does not follow the compound growth formula.
4. A cycle dealer in Meerut sells two cycles for ₹4800 each. On one he gains 20% and on the other he loses 20%. Taking the two sales together, what is the result?
- AHe breaks even
- BHe gains ₹400
- CHe loses ₹400
- DHe loses ₹1920
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Answer: C) He loses ₹400
Find each cost price. Gain cycle: CP = 1.204800 = 4000. Loss cycle: CP = 0.804800 = 6000. Total CP = 10000 against total SP = 9600, so he loses ₹400. Trap: the two 20% figures do not cancel, because they are percentages of two DIFFERENT cost prices; ₹1920 is 20% of the total selling price.
5. A trader can either lend ₹50000 for 2 years at 8% per annum compounded annually, or hand it over for a flat fee of ₹8500 for the two years. Which brings in more, and by how much?
- ACompound interest, by ₹180
- BThe flat fee, by ₹500
- CBoth earn the same interest
- DThe flat fee, by ₹180
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Answer: D) The flat fee, by ₹180
Compound: A = 50000 × (1.08)² = 50000 × 1.1664 = 58320, so the interest is 8320. The flat fee beats it by 8500 − 8320 = ₹180. Trap: assuming compound interest must always win is the usual slip; ₹500 compares the fee with the SIMPLE interest (₹8000) instead of with the compound interest.