Question

Abha borrowed 8000 at 10 % p.a for one year and six months at simple interest. Ramesh borrows the same amount for the same time period and at
the same rate, compounded half-yearly. Who pays more amount and by how
much?​

Answer 1

Answer:

Abha has to return principle amount 8000 along with the interest let's count the interest

8000×10/100=800= interest amount for 1 year

400= interest amount for half year

total return =9200 rupees (8000+800+400)

now ramesh principle amount=8000 ru.

interest amount= 8000×10/100=800 (for first half year)

(8000+800)×10/100=880 (for second half year)

8800+880×10/100=960(for 3rd half year)

total 8000+800+880+960= 10040 ruppes

so ramesh pays more by 1840 rupees