Question
Raju invests a certain amount at an annual simple
interest rate of 6% for 2 years. The total amount he receives after this period is then reinvested at an annual simple interest rate of 10% for the next 3 years. Determine the ratio of the initial investment to the final amount obtained at the end of the entire period.Solution
ATQ; Let P = 100 Interest from first = 2 × 6%×100 = 12 Amount = 112 Interest form second = 3 × 10% × 112 = 33.6 12 : 33.6 = 5 : 14
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