Question

Afshi and Pooja both open savings accounts with a starting balance of

₹31250 on the same day. Afshi’s bank is paying him using compound

interest, but Pooja’s bank is paying her using simple interest. Both Afshi

and Pooja is receiving an interest rate of 20% annually. Who do you

think will have more balance in three years? Explain your answer with

proper steps. Plz tell the answer

Answer 1

afshi get more than Pooja cause she got money by compound interest

principle = 31250

rate of interest = 20%

no of year = 3

applying the Formula ,

si = p×R×N/100

si= 31250×20×3/100

si=31250×60/100

si= 18750

p_31250

r_20

n_3

compound interest= P(1+r/100)n

ci = 31250(1+20/100)3

ci=31250(120/100)3

ci= 31250(1.2)3

ci =31250×1.728

ci = 54000

so as a compound interest you see is 54000 and simple interest is 18750 ,

i.e so more balance get by Afshi