Find the ratio of simple interest and compound interest of a principal in 2 years at 10%
interest per annum.
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Answer:
simple interest:-
Time=2years
rate of interest= 10%
let the principal be rs.x
simple interest: principal*rate*time /100
=rs20x/100
Amount =( 1/5)X+X
= 6x/5
compound interest :-
For 1st year:-
6x/5*10*2/100
=24x
amount:-24x+6x/5
= 126x/5
for 2nd year :
126x/5*10*1
=252x
amount= 252x+ 126x/5
= 1276x
ratio: 6x/5:1276x
= 1063
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