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?​

Answer 1

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+ 100R )

T −P

=12500(1+ 10010 )

3 −12500

CI=16637.5−12500

Interest =4137.5

Comparing the interest paid by Bharathi and Madhuri we can see that Bharathi has to pay more and it is equal to the difference(4500−4137.5)=Rs.362.5

Answer 2

Answer:

Bharathi

Step-by-step explanation:

Amount borrowed by Bharathi= 12500

12%(Interest) of 12500= 1500

= 1500*3(years)

= 4500

Amount borrowed by Madhuri= 12500

10% of 12500= 1250

= 1250*3

= 3750

4500>3750

Therefore, Bharathi paid more interest