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If the ratio of the principal to the total amount after 2 years at 10% compound
Practice Questions
Q1
If the ratio of the principal to the total amount after 2 years at 10% compound interest is 1:1.21, what is the principal?
$1000
$1210
$1100
$900
Questions & Step-by-Step Solutions
If the ratio of the principal to the total amount after 2 years at 10% compound interest is 1:1.21, what is the principal?
Steps
Concepts
Compound Interest
– Understanding how compound interest works and how to apply the formula for calculating the total amount after a certain period.
Ratios
– Interpreting and manipulating ratios to find relationships between different financial quantities.
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