Question 98

What is the ratio of simple interest earned on certain amount at the rate of 12% for 6 years and that for 12 years?

Solution

We will not principal because principal is same so it will not effect on ratio

Net effective rate for 6 years = $$12\times\ 6=72$$%

Net effective rate for 12 years = $$12\times\ 12=144$$

Required ratio = 72 : 144 = 1 : 2.

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