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 ?
Answer & explanation
Correct answer: option 3
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
Simple interest earned at 5% : Simple interest earned at 10%
\(\frac{1000 ×5 × 2}{100}\) : \(\frac{1000 ×10 × 2}{100}\)
5 : 10
1 : 2