Question
Rajesh invests a certain amount at an annual simple
interest rate of 8% for 3 years. The total amount he receives after this period is then reinvested at an annual simple interest rate of 12% for the next 2 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 = 3 × 8% × 100 = 24
Amount = 124
Interest from second = 2 × 12% × 124 = 29.76
24 : 29.76 = 25 : 31
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