Aman borrows 14,500 at 11% per annum for three years at simple interest
and Tarun borrows the same amount at 10% per annum for the same time
compounded annually. Who pays more interest and by how much?
Answers
Answer
Step-by-step explanation:
Aman - p=₹14500, r=11%, t=3 years,
Simple Interest= 14500*11*3/100
=> ₹4785
Tarun= p=₹14500,r=11%,t=3 years
Simple Interest=14500*10*3/100
=>₹4350
Aman pays more interest by ₹435
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Answer: Tarun pays more interest than arman by Rs. 14.5
Step-by-step explanation:
arman's principle = 14,500
time period = 3 yrs
rate of interest = 11%
simple intrest = 14,500 x 11 x 3 /100
= 4,785
Tarun's principle = 14,500
time period = 3 yrs
rate of interest = 10 %
compound interest - A = 14,500 [1 + (10 / 100)]³
- A= 14,500 X 110/100 X 110/100 X 110/100
A = 19,830.65
CI = 19,299.5 - 14,500
= 4,799.5