HDFC bank offers an interest of 5% per annum compounded annually on all its deposits. If $10,000 is deposited, what will be the ratio of the interest earned in the 4th year to the interest earned in the 5th year? Choose the correct answer:	A) 1:5	B) 625:3125	C) 100:105	D) 100^4:105^4	E) 725:3225
Hi Bunuel,   Here is my approach: is this correct?   HDFC bank offers an interest of 5% per annum compounded annually on all its deposits.   Interest earned in 4 year= 10000(1+0.05)^4   Interest earned in 5 year= 10000(1+0.05)^5   Ratio= {10000(1.05)^4}/{10000(1.05^5)} =&gt;1.05^4/1.05^5 =&gt;1/1.05 Multiplied by 100 in both numerator and denominator gives 100:105   Hence Ans:100:105
<result>C</result>
HDFC bank offers an interest of 5% per annum compounded annually on all its deposits. If $10,000 is deposited, what will be the ratio of the interest earned in the 4th year to the interest earned in the 5th year?