Question

class 8 Sheena borrows rupy 12,500 at 15•/•per amun for 3 years at simple int and radha borrows the same amount for the same time period at 10•/•per amun compounded only who pays more interest and by how much?​

Answer 1

Answer:

Here, Principal (P) = Rs.12,500, Time (T) = 3 years, Rate of interest (R) = 12% p.a.

Simple interest for Fabina = \frac{P\times R\times T}{100}=\frac{12500\times12\times3}{100}=\ Rs.\ 4,500

Amount for Radha, P = Rs. 12,500, R = 10% and n = 3 years

Amount (A) = P\left(1+\frac{R}{100}\right)^n

= 12500\left(1+\frac{10}{100}\right)^3=12500\left(1+\frac{1}{10}\right)^3

= 12500\left(\frac{11}{10}\right)^2=12500\times\frac{11}{10}\times\frac{11}{10}\times\frac{11}{10}

= Rs. 16,637.50

\therefore C.I. for Radha = A – P

= Rs. 16,637.50 – Rs. 12,500 = Rs. 4,137.50

Here, Fabina pays more interest

= Rs. 4,500 – Rs. 4,137.50 = Rs. 362.50