Compound Interest Practice Test 2

Question : 16 of 40

Marks: +1, -0

A sum is borrowed at 20% p.a. compound interest. What is the ratio of increase in amount at 10th year and 13th year.

Solution:

{P(1+r/100)^10}/{P(1+r/100)^13}=1/{(1+r/100)^3}

=1/({1+20/100})^3=1/(6/5)^3=125/216

So, the required ratio = 125 : 216

Go to Question:

Prev Question

Next Question