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Question : What will be the ratio of the simple interest on 1,000 for 2 years at 5% per annum to the simple interest on the same sum for the same period at 10% per annum?

Option 1: 2 : 1

Option 2: 3 : 1

Option 3: 1 : 2

Option 4: 1 : 3


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 1 : 2


Solution : Simple interest = $\frac{\text{Principal × Term × Rate}}{100}$
Simple interest on 1,000 for 2 years at 5% per annum = $\frac{1000 × 2 × 5}{100}$ = INR 100
Simple interest on 1,000 for 2 years at 10% per annum = $\frac{1000 × 2 × 10}{100}$ = INR 200
Required ratio = 100 : 200 = 1 : 2
Hence, the correct answer is 1 : 2.

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