Question

fabina borrowed Rs. 12500 at 12% per annum for 3 years at simple interest and Radha borrowed the same amount for the same time period at 10% per annum compounded annually. who pay
more interest and how many?

Answer 1

It should be answer of your problem

Answer 2

$\huge\underline\mathrm{SOLUTION:-}$

Case 1:

• For Fabina:

Given:

• P = ₹ 12,500
• R = 12%
• T = 3 Years

Formula used here:

• SI = P × R × T/100

Putting the values according to the given formula:

➠ 12500 × 12 × 3/100

➠ 125 × 12 × 3

➠ Rs.4,500

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Case 2:

• For Radha:

Given:

• P = ₹ 12,500
• R = 10%
• T = 3 Years

Formula used here:

• Amount = P(1 + R/100)^n

Putting the values according to the given formula:

➠ 12,500(1 + 10/100)^3

➠ 12,500(1+ 1/10)^3

➠ 12,500(11/10)^3

➠ 12,500 × 11/10 × 11/10 × 11/10

➠ 25 × 1331/2

➠ Rs. 16637.50

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Now, Need To Find:

• New Compound Interest = ?

Formula used here:

• Amount - Principal

Putting the values according to the given formula:

➠ 16637.50 - 12500

➠ Rs. 4137.50

Now, we can say that compound interest is less than simple interested it means Fabina paid more interest than Radha.

➠ 4500 - 41375

➠ Rs. 362.50 (Your Answer)

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Here:

• P is used for Principal.
• R is used for Rate of Interest.
• T is used for Time.
• SI is used for Simple Interest.

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