Question

102. Instead of paying by simple interest on 12,500.compound interest is paid for
a period or 2 years at 8 p.c.p.a. Then how much more amount is paid?
023
(2) < 1080
(3) 200
(4) 7160​

Answer 1

Given,

Principal (P) = Rs. 12500

Time (t) = 2 years

Rate (r) = 8% p.a

Simple Interest = Prt/100

= (12500*8*2)/100

= Rs. 2000

Amount = P+S.I

= (2000+12500)

= Rs. 14500

Amount with Compound Interest = P(1+r/100)ⁿ

n = 2 years

= 12500(1+8/100)²

= 12500(1+0.08)²

= 12500*1.08*1.08

= Rs. 14580

Difference = Rs. (14580-14500)

= Rs. 80

With Compound Interest, Rs. 80 is more paid.

I hope this helps.