Discuss Forum
1. The simple interest received on a sum of money at the end of 10 years is two times of the principle. At the same rate of interest, what would be the ratio of principal and compound interest received at the end of two years?
- A. 25 :11
- B. 25 :11
- C. 25 :11
- D. 25 :11
Answer: Option A
Explanation:
ATQ, Pxrx10 = 2P Or, r = 1/5 Compound Interest = P{(1 + r)^n - 1} = P{(1 + 1/5)^2 - 1} = 0.44P The ratio of principal and compound interest = P/0.44P = 100/44 = 25:11
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