A sum of money becomes two times of itself in 8 years at simple interest, and it becomes four times of itself in 2 years at compound interest, when interest is compounded annually. Find the ratio of the rate of simple interest to the rate of compound interest offered per year.
- AOption (a)
2 ∶ 3
- BOption (b)
3 ∶ 5
- COption (c)
5 ∶ 3
- DOption (d)
1 ∶ 8
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Correct answer
2 ∶ 3