Monday, 20 January 2014

Question of the Day No. 16


What is ratio of Compound Interest and Simple Interest on a Certain Sum for 2 Years on 5% per annum ?

a) 41:40   b) 43:42   c) 40:39   d) 42:41   e) 45:44 

Answers and Explanations are welcome in comments

The Correct Answer will be Given Tomorrow

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1 comment:

  1. Unknown21 January 2014 at 20:03

    Correct Answer is 41:40
    Explanation : Let any Amount as Principle (P=100 or you can choose any amount)

    SI=PRT/100 = (100*5*2)/100 = 10
    CI=P(1+r/100)^t = 100(1+5/100)^2 = 10.25

    So the Ratio is 10.25 : 10 or 1025/100 : 100

    Cross multiply both then you will find 1025 : 1000

    Divide both by 25 and then you will find 41 : 40

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