Question
Krishna invests a certain amount at an annual simple
interest rate of 9% for 2 years. The total amount he receives after this period is then reinvested at an annual simple interest rate of 14% 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 = 2 × 9% × 100 = 18 Amount = 118 Interest from second = 4 × 14% × 118 = 66.56 18 : 66.56 = 9 : 33
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