Question

Find the ratio of simple interest and compound interest of a principal in 2 years at 10%

interest per annum.​

Answer 1

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