Question

12. Bharathi borrows an amount of 12500 at 12% per annum for 3 years at a simple interest
and Madhuri borrows the same amount for the same time period at 10% per annum,
compounded annually. Who pays more interest and by how much?
And please please please mark as brainliest

Answer 1

Step-by-step explanation:

For Bharathi

P=12500,R=12%,T=3

SI=

100

PRT

=

100

(12500×12×3)

Interest =44500

For Madhuri

P and T are same but R=10% compounded annually

CI=P(1+

100

R

)

T

−P

=12500(1+

100

10

)

3

−12500

CI=16637.5−12500

Interest =4137.5

(4500−4137.5)=Rs.362.5