Question

Aman borrows 20,000 at 12% per annum for 3 years at simple interest and
Raman borrows the same amount for the same period at 10% p.a. compound
nually. Who pays more interest and by how much?
interest, compounded annually.Who pays more interest and by how much?​

Answer 1

Answer:

Aman pays more interest by Rs. 580

Step-by-step explanation:

Aman:

p =20,000

r = 12%

t = 3yrs

Si = p x r x t/100

= ( 20,000 x 12 x 3 ) / 100

= Rs.7200

Raman:

p =20,000

r = 10%

t = 3yrs

Ci = p ( 1 + r / 100)^ n - p

= 20,000 ( 1 + 10 / 100) ^ 3 -20,000

= 26620 - 20000

= Rs. 6620

differnce interest :

Rs.7200 - Rs. 6620

= Rs. 580

I HOPE THIS WILL HELP YOU OUT :)