Question

A sum of money was divided into 2 parts in the ratio 2:5. First part was invested for 2 years at the annual interest rate of $20\%$ compounded annually. At what rate of simple interest per annum the second part must be invested for 2 years, so that the interest earned in both cases is the same?

• A. $8.8\%$
• B. Cannot be determined
• C. $10.2\%$
• D. $9.6\%$

Answer 1

Answer: (A)

$8.8\%$

Answer 2

The correct answer is (A),$8.8\%$