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A bank offers an interest of \(5\%\) per annum compounded annually on all its deposits. If \(\$10,000\) is deposited,

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by Vincen » Fri Aug 06, 2021 7:24 am
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A 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 \(4\)th year to the interest earned in the \(5\)th year?

A. \(1:5\)
B. \(625:3125\)
C. \(100:105\)
D. \(100^4:105^4\)
E. \(725:3225\)

Answer: C

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