Question

D. (6.9)
26. Karina 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 ?​

Answer 1

Explanation:

first we find si

si=p*r*t by 100

12500*12*3by =4500

Radha borrow

R=10%

12500*10*3by = 3750

4500-3750=750

hence the karina borrowed More interest