Question

2
Mahima and Monika borrowed 12000 at 10.5%p a simple interest and 10% p.a. compound interest
respectively for three years. Who paid more interest and by how much?
(a) Mahima, 162
(b) Mahima, 192
(c) Monika, 162
(d) Monika, 192​

Answer 1

Sorry idk how to calculate it. But i can say mahima had paid more compound interest. Its 1st or second options. With the compound interest formula given in your book you can find it. Sorry lol

Answer 2

Answer:

Option (d)

Explanation:

Given :-

Mahima and Monika borrowed 12000 at 10.5%p a simple interest and 10% p.a. compound interest

respectively for three years.

To find :-

Who paid more interest and by how much?

Solution :-

Given that

Mahima borrowed money (P) = Rs. 12000

Rate of interest (R) = 10.5%

Time (T) = 3 years

We know that

Simple Interest = PTR/100

=> SI = (12000×10.5×3)/100

=> SI = 120×10.5×3

=> SI = Rs. 3780

and

Monika borrowed money (P) = Rs. 12000

Rate of interest (R) = 10%

Time = 3 years

The number of time the compound interest is calculated for 3 years (n) = 3

We know that

A = P[1+(R/100)]^n

=> A = 12000[1+(10/100)]³

=> A = 12000[1+(1/10)]³

=> A = 12000[(10+1)/10]³

=>A = 12000(11/10)³

=> A = 12000×1331/1000

=> A = 12×1331

=> A = Rs. 15,972

We know that

Interest = Amount - Principle

=> Interest = 15972-12000

=> Interest = Rs. 3972

Monika paid more money than that of Mahima

by 3972-3780 = Rs. 192

Answer :-

Monika paid Rs. 192 more than that of Mahima

Used formulae:-

→ Simple Interest = PTR/100

→ A = P[1+(R/100)]^n

→ Interest = Amount - Principle

• P = Principle
• T = Time
• R = Rate of Interest
• n = The number of time the compound interest is calculated