Question

Bharathi Borrows amount of 12,500 at 12% per annum for 3 years at simple interest and Madhuri borrow the same amount for the same time period at 10% per annum compounded annually who pays more interest and my how much

Answer 1

hi.....
Here is your answer.

Answer 2

bharathi's amount

S.I= PTR/100

=12500×12×3/100=4500, A=12500+4500=17000

madhavi's amount= 12500[1+10/100]^3

=12500[11+10]^3 =125×1331/10 =1663.75

bharathi pays more

difference between the amount=17000-1663.75

=362.5/-