Question

ATICS
,
3. Fabina borrows 7 12,500 at 12% per annum for 3 years at simple interest and
Radha borrows the same amount for the same time period at 10% per annum
inded annually. Who pays more interest and by how much?​

Answer 1

Answer:

In case of Fabina:

P=Rs.12500

R=12% per annum and T=3 years, then

SI=

100

P×R×T

=Rs.(

100

12500×12×3

)=Rs.4500

In case of Radha:

Amount=P(1+

100

R

)

T

Amount=Rs.[12500×(1+

100

10

)

3

]

=Rs.(12500×

100

110

×

100

110

×

100

110

)=Rs.16637.50

∴ Compound Interest =Rs.(16637.50−12500)=Rs.4137.50

Hence, Fabina pays Rs.(4500−4137.50),i.e.,Rs.362.50 more as interest