Mathematics · Compound Interest
At a compound interest rate of 5% per annum compounded annually, what will be the ratio of the principal amount to the total amount after n years?
- 1(22)n : (20)n
- 2(20)n : (21)n✓
- 3(21)n : (20)n
- 4(22)n : (21)n
Correct answer
(20)n : (21)n
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