Question

Bharathi borrows an amount of 12500 at 12% per annum for 3 years at simple interest and Madurai Boris the same amount for the same time period at 10% per annum compounded annually who pays more interest and by how much ok

Answer 1

Bharathi:

Principal amount = Rs 12500

Interest = 12% simple interest

interest per year = 12% x 12500 = 0.12 x 12500 = Rs 1500

Interest for 3 years = 1500 x 3 = Rs 4500

Madurai Boris:

Principal amount = Rs 12500

Interest = 10% compounded

Amount paid at the end = 12500( 1 + 10/100)³

Amount paid at the end = Rs 16637.50

Interest for 3 years =  16637.50 -  12500 = Rs 4137.50

Difference in interest:

Difference = 4500 -  4137.50 = Rs 362.50

Answer: Bharathi paid more. He paid  Rs 362.50 more.

Answer 2

Answer:

here, P=12500,T=3 yrs, R=12%

As I=PTR/100

=12500×3×12

Interst for 3 years =4500rs

Amount to be paid at the end of 3 years =principal+interest=12500[1+10/100]¬3

=16637.50

Amount paid at the end =16637.50-12500

=4137.50

Difference=4500-4137.50

=362.50

. °.barathi pays 362. 50 more per 3 years at the amount of 12500 at 12 % than madhuri``