Mathematics for FinanceMTP June 24 Series IQuestion 1406 of 512
All Questions

If a simple interest on a sum of money at 6%\displaystyle 6\% p.a. for 7 years is equal to twice of simple interest on another sum for 9 years at 5%\displaystyle 5\% p.a. The ratio will be:

Options

A2:15\displaystyle 2:15
B7:15\displaystyle 7:15
C15:7\displaystyle 15:7
D1:7\displaystyle 1:7
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option c — 15:7\displaystyle 15:7

All Options:

  • A2:15\displaystyle 2:15
  • B7:15\displaystyle 7:15
  • C15:7\displaystyle 15:7
  • D1:7\displaystyle 1:7

Detailed Solution & Explanation

Let the first sum of money be P1\displaystyle P_1 and the second sum of money be P2\displaystyle P_2. Given parameters: * For the first sum: Rate (r1\displaystyle r_1) = 6%\displaystyle 6\% p.a., Time (t1\displaystyle t_1) = 7\displaystyle 7 years SI1=P1×6×7100=42P1100=0.42P1SI_1 = \frac{P_1 \times 6 \times 7}{100} = \frac{42 P_1}{100} = 0.42 P_1 * For the second sum: Rate (r2\displaystyle r_2) = 5%\displaystyle 5\% p.a., Time (t2\displaystyle t_2) = 9\displaystyle 9 years SI2=P2×5×9100=45P2100=0.45P2SI_2 = \frac{P_2 \times 5 \times 9}{100} = \frac{45 P_2}{100} = 0.45 P_2 We are given that SI1\displaystyle SI_1 is equal to twice of SI2\displaystyle SI_2: SI1=2×SI2SI_1 = 2 \times SI_2 0.42P1=2×(0.45P2)0.42 P_1 = 2 \times (0.45 P_2) 0.42P1=0.90P20.42 P_1 = 0.90 P_2 The ratio of the two sums (P1:P2\displaystyle P_1 : P_2) is: P1P2=0.900.42=9042=157\frac{P_1}{P_2} = \frac{0.90}{0.42} = \frac{90}{42} = \frac{15}{7} Thus, the ratio of the sums is 15:7\displaystyle 15:7. Hence, **Option C** is the correct answer.

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 512 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free