Question

Find the ratio of CI to SI on a certain sum at 10% per annum for 2 years?

• A. 21 : 20
• B. 20 : 21
• C. 20 : 43
• D. 40 : 50

Answer 1

Answer:

A. 21 : 20

$\frac{CI}{SI}=\frac{P[(1+\frac{10}{100})^2-1]}{\frac{P\times10\times2}{100}}$

$=\frac{\frac{11^2}{10^2}-1}{\frac{2}{10}}$

$=\frac{(121-100)}{20}$

$=\frac{21}{20}$

$CI:SI=21:20$