Question

6. Sheela borrows 15000 from her friend at 12%
p.a. for 3 years at simple interest. Renu borrows
the same amount from a bank for 3 years at
1
10 % p.a. compounded annually. Who pays
2.
more interest and by how much?​

Answer 1

Answer:

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Answer 2

Solution :

Let us take the two situations seperately .

Sheena borrows Rs. 15,000 from her friend at 12% interest per annum for 3 years compounded under simple interest .

The principal here is Rs. 15,000

Rate Of Interest : 12% per annum

Time period : 3 years .

According to the simple interest formulae ;

SI = [ Principal × Rate × Time Period ]/100

Substituting the values here :

=> [ 15,000 × 12 × 3]/100

=> Rs .5400

=> Required SI for Sheela is Rs. 5400

For Renu :

Renu borrows Rs. 15,000 from the bank at 10.5% interest per annum for 3 years compounded under simple interest .

The principal here is Rs. 15,000

Rate Of Interest : 10.5 % per annum

Time period : 3 years .

According to the simple interest formulae ;

SI = [ Principal × Rate × Time Period ]/100

Substituting the values here :

=> [ 15,000 × 10.5 × 3]/100

=> Rs . 4725

=> Required SI for Renu is Rs. 4725

So, we can conclude that Sheena pays more interest than Renu with the difference being Rs. 675

This is the required answer .

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