Multiple choice

What will be the ratio of simple interest earned by a certain amount at the same rate of interest for 2 years and for 4 years ?

  1. 2 : 1

  2. 1 : 2

  3. 1 : 3

  4. Cannot determine
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For simple interest, the formula is I = P × R × T where I is interest, P is principal, R is rate, and T is time. If the same amount P is invested at the same rate R, then interest is directly proportional to time. For 2 years: I₂ = P × R × 2. For 4 years: I₄ = P × R × 4. The ratio I₂ : I₄ = 2PR : 4PR = 2 : 4 = 1 : 2. Option (B) is correct. The answer can be determined - the principal and rate cancel out.

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