Answer: B
In the first year, both simple interest and compound interest are calculated on a principal amount of ₹100, and the interest is 10% of ₹100 = ₹10. Now, at the beginning of the second year: - For simple interest, the principal remains ₹100 - But for compound interest, the principal becomes ₹100 + ₹10 = ₹110, as the interest from the first year is added to the original principal. ∴ In the second year: - Simple interest = 10% of ₹100 = ₹10 - Compound interest = 10% of ₹110 = ₹11 ∴ The ratio of simple interest to compound interest in the second year is 10 : 11.
In the first year, both simple interest and compound interest are calculated on a principal amount of ₹100, and the interest is 10% of ₹100 = ₹10. Now, at the beginning of the second year: - For simple interest, the principal remains ₹100 - But for compound interest, the principal becomes ₹100 + ₹10 = ₹110, as the interest from the first year is added to the original principal. ∴ In the second year: - Simple interest = 10% of ₹100 = ₹10 - Compound interest = 10% of ₹110 = ₹11 ∴ The ratio of simple interest to compound interest in the second year is 10 : 11.