Question

a person lent out rs 16000 on simple interest and same sum on compound interest for 2 years at 25/2 per annum . find the ratio of the amounts received by him as interest after 2 years

Answer 1

hope this may help you

Answer 2

The ratio will be 80 : 81.

Step-by-step explanation:

A person lent out Rs. 16000 on simple interest for 2 years at 12.5% interest per annum.

Therefore, the sum will become after 2 years is $16000(1 + \frac{2\times 12.5}{100}) = 20000$ Rs.

So, the interest he gets is Rs. (20000 - 16000) = Rs. 4000

If the person lent out the same amount on compound interest for 2 years at 12.5 % interest per annum, then the sum will become after 2 years is

$16000(1 + \frac{12.5}{100} )^{2} = 20250$ Rs.

Therefore, the interest he gets is Rs. (20250 - 16000) = Rs. 4250

Therefore, the ratio of interest amount in simple interest and compound interest will be 4000 : 4250 = 16 : 17 (Answer)