Saved Bookmarks
| 1. |
Fabina borrows ₹ 25000 at 15% per annually for 2 years at simple interest and Radha borrowed the same amount for the same time provide and same rate but compounded annually who plays more interest and by how much? |
|
Answer» In CASE of Fabina: P=Rs.12500 R=12% per annum and T=3 years, then SI= 100 P×R×T
=Rs.( 100 12500×12×3
)=Rs.4500 In case of Radha: Amount=P(1+ 100 R
) T
Amount=Rs.[12500×(1+ 100 10
) 3 ] =Rs.(12500× 100 110
× 100 110
× 100 110
)=Rs.16637.50 ∴ COMPOUND INTEREST =Rs.(16637.50−12500)=Rs.4137.50 Hence, Fabina pays Rs.(4500−4137.50),i.e.,Rs.362.50 more as interest. |
|