Question
Sita invests a certain amount at an annual simple
interest rate of 10% for 3 years. The total amount she receives after this period is then reinvested at an annual simple interest rate of 6% for the next 4 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 × 10% × 100 = 30 Amount = 130 Interest from second = 4 × 6% × 130 = 31.2 30 : 31.2 = 25 : 26
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