Arithmetichard · Past Paper

What is the ratio of SI and CI on a certain sum for 2 years at 10% per annum?

A20:21
B10:11
C5:6
D21:20

✓ Correct Answer: A20:21

SI = 0.2P. CI = P(1.1^2 - 1) = 0.21P. Ratio SI/CI = 0.2/0.21 = 20/21.

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