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Ratio between capital lent for 2 year co...

Ratio between capital lent for 2 year com pounded annually and for 4 year at simple interest is 6 : 5. If the interest obtained after given time is equal find rate of interest.

A

`132.33%`

B

`133.33%`

C

`131.33%`

D

`138.33%`

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The correct Answer is:
To solve the problem, we need to find the rate of interest given the ratio of capital lent for 2 years at compound interest and for 4 years at simple interest. Let's go through the solution step by step. ### Step 1: Define the Capitals Let the capital lent for 2 years at compound interest be \( C_1 \) and the capital lent for 4 years at simple interest be \( C_2 \). According to the problem, the ratio of these capitals is given as: \[ C_1 : C_2 = 6 : 5 \] We can express this as: \[ C_1 = 6x \quad \text{and} \quad C_2 = 5x \] ### Step 2: Calculate Compound Interest for 2 Years The formula for compound interest (CI) for 2 years is: \[ CI = P \left(1 + \frac{r}{100}\right)^n - P \] For our case: \[ CI_1 = 6x \left(1 + \frac{r}{100}\right)^2 - 6x \] This simplifies to: \[ CI_1 = 6x \left[\left(1 + \frac{r}{100}\right)^2 - 1\right] \] ### Step 3: Calculate Simple Interest for 4 Years The formula for simple interest (SI) is: \[ SI = P \cdot r \cdot t \] For our case: \[ SI_2 = 5x \cdot \frac{r}{100} \cdot 4 \] This simplifies to: \[ SI_2 = 20x \cdot \frac{r}{100} \] ### Step 4: Set the Interests Equal According to the problem, the interests obtained from both investments are equal: \[ CI_1 = SI_2 \] Substituting the expressions we derived: \[ 6x \left[\left(1 + \frac{r}{100}\right)^2 - 1\right] = 20x \cdot \frac{r}{100} \] ### Step 5: Simplify the Equation We can cancel \( x \) from both sides (assuming \( x \neq 0 \)): \[ 6 \left[\left(1 + \frac{r}{100}\right)^2 - 1\right] = 20 \cdot \frac{r}{100} \] This simplifies to: \[ 6 \left(1 + \frac{r}{100}\right)^2 - 6 = \frac{20r}{100} \] \[ 6 \left(1 + \frac{r}{100}\right)^2 = \frac{20r}{100} + 6 \] ### Step 6: Expand and Rearrange Expanding the left side: \[ 6 \left(1 + 2\frac{r}{100} + \frac{r^2}{10000}\right) = \frac{20r}{100} + 6 \] This gives: \[ 6 + \frac{12r}{100} + \frac{6r^2}{10000} = \frac{20r}{100} + 6 \] Subtracting 6 from both sides: \[ \frac{12r}{100} + \frac{6r^2}{10000} = \frac{20r}{100} \] ### Step 7: Combine Like Terms Bringing all terms to one side: \[ \frac{6r^2}{10000} + \frac{12r}{100} - \frac{20r}{100} = 0 \] This simplifies to: \[ \frac{6r^2}{10000} - \frac{8r}{100} = 0 \] ### Step 8: Factor the Equation Factoring out \( r \): \[ r \left(\frac{6r}{10000} - \frac{8}{100}\right) = 0 \] This gives us: \[ r = 0 \quad \text{or} \quad \frac{6r}{10000} = \frac{8}{100} \] ### Step 9: Solve for r Solving for \( r \): \[ 6r = 800 \quad \Rightarrow \quad r = \frac{800}{6} = \frac{400}{3} \approx 133.33\% \] ### Final Answer The rate of interest is: \[ \boxed{133.33\%} \]
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