Question

Adil and Ankur were two friends. Adil wants to start the new business so he decided to borrow some
money. Adil borrowed ₹4,00,000 from his friend Ankur at 5% per annum simple interest for 1 year 6
months. Also, Adil borrowed the same sum from a bank at 8% per annum compounded annually for
1 year.
a) How much interest Adil pay to his friend after given time period?
b) On the same sum, how much interest Adil will pay to the bank after given period?
c) To whom Adil will pay more interest?
d) How much extra interest Adil will pay?

Answer 1

Answer:

a. adil pays 30,000 rupess to his friend as interest

b. 49250 is the amount

c. bank

d. 19250 paid more

Step-by-step explanation:

is my answer right

Answer 2

a)- $SI=\frac{PRT}{100}\\Therefore, SI= \frac{4,00,000 X 5 X 1.5}{100} \\=\frac{400000 X 5 X 15}{1000}\\= 400 X 5 X 15= 30000 Rs$Hence Adil will pay ₹30,000 as interest to Ankur

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b- $CI=P[(\frac {100+R}{100})^{n} -1]\\Therefore CI= 400000[(\frac{100+8}{100})^{n} -1]\\= 400000[\frac{108}{100}-1}\\= [\frac{108}{100} *400000] -400000\\=432000-400000= 32000 Rs$Hence Adil will pay ₹32000 interest to the bank

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c- As interest being paid to the bank(₹32000)>the interest being paid to Ankur(₹30000), Adil will pay more interest to the bank

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d- ₹32000-₹30000= ₹2000, Hence Adil will pay ₹2000 extra interest