Question

3. Fabina borrows : 12,500 at 12% per annum for 3 years at simple interest a
Radha borrows the same amount for the same time period at 10% per annu
compounded annually. Who pays more interest and by how much?​

Answer 1

I HOPE THIS WILL HELP YOU AND PLEASE LIKE MY ANSWER

Answer 2

Given:

→ Fabiana borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually.

ㅤ

Find:

→ Who pays more interest and by how much?

ㅤ

Using formula:

→ S.I = (Principal × Rate × Time)/100

→ A = Principal (1 + Rate/100)ⁿ

→ C.I = Amount - Principal

ㅤ

Note:

→ (ⁿ) = Number of years or Time period.

ㅤ

Calculations:

★ Finding for Radha:

→ (12500 × 12 × 3)/100

→ 450000/100

→ 4500

ㅤ

★ Finding for Fabina:

→ 12500 × (1 + 10/100)³

→ 12500 × (11/10)³

→ {12500 (11 × 11 × 11)}/1000

ㅤ

→ 125 × 1331/10

→ 166375/10

→ 16637.5

ㅤ

★ Amount paid by Radha:

→ 16637.50 - 12500

→ 4137.5

ㅤ

★ Fabia pays more:

→ 4500 - 4137.50

→ 362.5

ㅤ

Hence, Fabia pays more 362.5 than Radha.