Question

Arun borrows Rs 20000 at 12% per annum for 2 years at simple interest and Malik borrows the same amount for the same time period at 10% per annum compounded annually. Who pays more interest and by how much?​

Answer 1

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ɢɪᴠᴇɴ :

Arun borrows Rs 20000 at 12% per annum for 2 years at simple interest and Malik borrows the same amount for the same time period at 10% per annum compouɴded annually. Who pays more interest and by how much?

ᴀɴsᴡᴇʀ :

ᴛʜᴇ ғɪʀsᴛ ʏᴇᴀʀ ɪɴᴛᴇʀᴇsᴛ ɪ= $\frac{2000 \times 1 \times 12}{100}$ = 2400

sᴏ ᴀᴍᴏᴜɴᴛ ᴀғᴛᴇʀ ᴏɴᴇ ʏᴇᴀʀ = ₹.20000+ ₹.2400=₹ .22400

∴ ᴀᴍᴏᴜɴᴛ ᴏғ ᴍᴏɴᴇʏ ʀᴇᴘᴀɪᴅ = ₹ 8400

∴ ʙᴀʟᴀɴᴄᴇ = ₹22400− ₹8400= ₹14000

sᴇᴄᴏɴᴅ ʏᴇᴀʀ :

ɪɴᴛᴇʀᴇsᴛ ɪ= $\frac{14000 \times 1 \times 12}{100}$

= ₹14000+ ₹1680= ₹.15680

so ᴀᴍᴏᴜɴᴛ ᴀғᴛᴇʀ ᴏɴᴇ ʏᴇᴀʀ = ₹.14000+ ₹.1680= ₹.15680

ᴀʀᴜɴ ᴘᴀɪᴅ ʀs. 9680 ᴀᴛ ᴛʜᴇ ʟᴀsᴛ ᴏғ sᴇᴄᴏɴᴅ ʏᴇᴀʀ.

Answer 2

ɢɪᴠᴇɴ :

Arun borrows Rs 20000 at 12% per annum for 2 years at simple interest and Malik borrows the same amount for the same time period at 10% per annum compouɴded annually. Who pays more interest and by how much?

ᴀɴsᴡᴇʀ :

ᴛʜᴇ ғɪʀsᴛ ʏᴇᴀʀ ɪɴᴛᴇʀᴇsᴛ ɪ= \frac{2000 \times 1 \times 12}{100}

100

2000×1×12

= 2400

sᴏ ᴀᴍᴏᴜɴᴛ ᴀғᴛᴇʀ ᴏɴᴇ ʏᴇᴀʀ = ₹.20000+ ₹.2400=₹ .22400

∴ ᴀᴍᴏᴜɴᴛ ᴏғ ᴍᴏɴᴇʏ ʀᴇᴘᴀɪᴅ = ₹ 8400

∴ ʙᴀʟᴀɴᴄᴇ = ₹22400− ₹8400= ₹14000

sᴇᴄᴏɴᴅ ʏᴇᴀʀ :

ɪɴᴛᴇʀᴇsᴛ ɪ= \frac{14000 \times 1 \times 12}{100}

100

14000×1×12

= ₹14000+ ₹1680= ₹.15680

so ᴀᴍᴏᴜɴᴛ ᴀғᴛᴇʀ ᴏɴᴇ ʏᴇᴀʀ = ₹.14000+ ₹.1680= ₹.15680

ᴀʀᴜɴ ᴘᴀɪᴅ ʀs. 9680 ᴀᴛ ᴛʜᴇ ʟᴀsᴛ ᴏғ sᴇᴄᴏɴᴅ ʏᴇᴀʀ.