Question

Ambadas took a loan of rs 96000 at compound interest from a bank to drill a well in his field If the rate is6.25p.c.p.a. What amount will he have to pay to the bank if he returns the loan after 2 yearsHow much money would he have to saved had he been able to borrowed the same amount at simple interest for the same period at the same rate??​

Answer 1

Answer:

simple interest = principal*rate*no of year

100

S.I = 96,0000*6.25*2

100

then we have to cut two zeroes from hundred and mulitiply 960*6.25*2

and the simple interest is 12,000Rs

and then we have to find amount

Amount = principal(1+R)N

100

A = 96,000(1+6.25 *100)2 first we have to multiply 6.25 from hundred to remove point and divide both hundred and then multipy answer is 16

100*100

A = 96000(16+1)2

16

A = 96,000 * 17 * 17 we have to divide 16 from 96,000 and the answer is 6,000 and we have to divide 6,000 from 16 and the answer is 375

16 16

and then we have to multiply 375 * 17 * 17

and the Amount is 108375 Rs

and then we have to find compound interest

Amount - Principal

108375 - 960000

and the compound interest is 12375 Rs

for Difference between compound interest and simple interest

compound interest - simple interest

12375 - 120000

= rs 375

Answer 2

First we have to write the given info

Given

P = 96000

R = 6.25

N = 2years

then we have to write

A with C.I = P (1+R/100)

A = 96000 (1+ 6.25/100)²

A = 96000 (106.25/100)²

A = 96000 × 106.25/100 × 106.25/100

A = 108375 rupees

Now they have also told us to find the simple interest.

S.I =

P = 96000 rupees

R = 6.25

N = 2 years

S.I = P×R×N /100

S.I = 96000×6.25×2/100

S.I = 12000

therefore the difference between simple interest and compound interest = compound - simple

12375 - 12000

= 375.

Ans: Therefore the compound Interest will be 108375 rupees and the simple interest will be 375 rupees after 2 years