Find the ratio of the simple interest and the compound interest on Rs100 at 10 per annum for 2 years...........

Quantitative Aptitude (MTS) Simple Interest

Find the ratio of the simple interest and the compound interest on Rs100 at 10% per annum for 2 years, if, when compounded,

interest is compounded annually.

This questions was previously asked in

SSC MTS 22nd July 2022 Shift-2

13 : 32

20 : 21

21 : 20

32 : 13

Let’s break down the two types of interest:

- Simple Interest (SI) on ?100 for 2 years at 10% per annum:

- Formula: SI = P × R × T / 100 = 100 × 10 × 2 / 100 = ?20

- Compound Interest (CI) (compounded annually) for same values:

- Year 1: Interest = ?10 (10% of ?100)

- Year 2: Interest = ?11 (10% of ?110, since first year’s interest is added)

- Total CI = ?10 + ?11 = ?21

- Ratio SI : CI = 20 : 21

Let’s check your options:

1. 13 : 32 – That’s not correct.

2. 20 : 21 – This matches our calculation perfectly.

3. 21 : 20 – That would put SI higher than CI, which never happens.

4. 32 : 13 – That’s just not possible here.

Correct answer: Option 2 – 20 : 21.

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