Question

Avi and Bani took a loan of the same amount at 7% per annum for 1 year. Avi
borrowed at simple interest, and Bani borrowed at compound interest. Who pays
more interest after one year?
(i) Avi
(ii) Bani
(iii) Both earn the same interest.
(iv) Cannot be determined since the amount is not given​

Answer 1

Answer:

option 2

because compound interest has more amount of interest in a profit of the bank.