An amount is invested at $33.33\%$ compounded annually.
What is the ratio of Compound interest for $4$ and $3$ years?
My approach: The fractional increment in each year is $\frac{4}{3}$.
For 4 years the fraction will be $\frac{256}{81}$ and the difference between the numerator and denominator will be the compound interest i.e 175.
Similarly for 3 years the fraction will be $\frac{64}{27}$ and the difference will be 37.
Hence the Ratio of Compound interest for 4 and 3 years will be $175:37$.
However, the answer is $175:111$, but I can't figure out how this method is giving wrong answer.
2026-04-01 06:23:49.1775024629
problem with solving Compound interest?
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1
Make the denominator the same for the two settings:
$$256 - 81 = 175$$
$$64(3)-27(3)=37(3)=111$$