Peter deposits an amount with a bank in the fixed deposit which offers an interest compounded annually. John
deposits the same amount with the same bank but in the savings scheme where he gets the same interest rate as
Peter but is not compounded. What would be the ratio of the sum that John gets after 6 years to that Peter gets
then?

• The ratio of the amount gets by John and Peter is :136:161
  Let Peter Deposited Rs.100 at 10% interest compounded annually for 6 years;
  he gets: 100(1+10/100)^6 , solving we get Rs.161
  And If similar amount John deposits at simple Int. He gets Rs.136
  Thus the ratio is 136:161
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