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Find the ratio of simple interest to compound interest for 2 years at 4% per annum, compounded yearly in case of compound interest.
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- 50 : 53
- 50 : 51
- 49 : 50
- 48 : 53
Correct Option: B
Given that , Rate ( r ) = 4% , Time ( t ) = 2 years
Using the given formula ,
| SI/CI = | ||||||||||||
| 100 |  |  | 1 + | |||||||||
 | t | − 1 |  | |||||||||
| 100 | ||||||||||||
| Required ratio = | |||||||||||
| 100 | | | 1 + | ||||||||
| 2 | − 1 | | ||||||||
| 100 | |||||||||||
| Required ratio = | |||||
| 25 | | ||||
| − 1 | | ||||
| 625 | |||||
| Required ratio = | ||
| 25 × 51 |
| = | = 50 : 51 | ||
| CI | 51 |
