COMPARING QUANTITIES 117 3. Fabina borrows 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, compounded annually. Who pays more interest and by how much?
Answers
Answer:
Step-by-step explanation:
According to this question,
Fabina borrowed 12,500 at 12% p.a for 3 years.And she gave it to Radha at 10% p.a for 3 years. Now we have to find who pays more.
First, we have to find the amount of money Fabina has to pay and then the amount of money Radha has to pay.
Formula for Simple interest =
P = 12,500
T = 3 Years
R = 12%
S.I = P X T X R / 100
S.I = 12500 X 3 X 12 /100 = 4500
S.I = 12,500 + 4,500
S.I = 17,000
Fabina has to pay Rs 17,000
Now we have to find the amount of money Radha has to pay.
P = 12,500
T = 3 Years
R = 10%
C.I = P ( 1 + R/100)T
C.I = 12,500 ( 1 + 10/100)3
C.I = 16637.5
Radha has to pay Rs 16637.5 to Fabina.
Since Rs 16637.5 is less than 17,000, Fabina has to pay more money than Radha.
Mark me as the brainiest answer. Thank you.