Question

Ajit borrowed Rs10,000 from Ajay at 5% per annum simple interest for 2 years.If he had borrowed Rs 10,000 at 5%per annum compound interest amount extra he had to pay?​

Answer 1

Answer:

₹25 IS THE EXTRA AMOUNT PAID!!!

Step-by-step explanation:

FOR SIMPLE INTEREST,

PRINCIPAL = ₹10,000

RATE% = 5%

TIME = 2 YEARS

SO,

SI = PRT/100

    =(10000*5*2)/100

    = 100*10

    = 1000

AMOUNT = SI+P

                 = 1000+10000

                 = ₹11000

FOR COMPOUND INTEREST,

PRINCIPAL = ₹10,000

RATE% = 5%

TIME = 2 YEARS

SO,

A=P(1+R/100)^N

  = 10000(1+5/100)²

  = 10000(21/20)²

  = (10000*21*21)/20*20

  = ₹11025

SO,

EXTRA AMOUNT = ₹11025-₹11000

                             = ₹25

I HOPE YOU UNDERSTOOD THE QUESTION