Question

Fbina borows 12500 at 12% per annum for 3 years at simple interest and radha borrows the same amount for the same time period at 10% per annu,m compounded anuunaly .Who pays more interest and by how much?

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Best Answer select brainleast marks .

Answer 1

Given,

$\huge{\bf{\underline{\pink{For \ Fabina :}}}}$

• Principal = ₹12500
• Rate of Interest = 12%
• Time = 3 years

We know that :

$\boxed{\bold{\red{Simple \ Interest = \frac{P \times R \times T}{100}}}}$

$\implies \large{\bold{\frac{12500 \times 12 \times 3}{100}}}$

$\implies \large{\bold{125 \times 12 \times 3}}$

$\implies \boxed{\large{\bold{Rs.4500}}}$

$\huge{\bf{\underline{\purple{For \ Radha}}}}$

Given,

• Principal = ₹12500
• Rate of Interest = 10%
• Time = 3 years

We Know that :

$\implies \boxed{\bold{\red{Amount = P(1 + \frac{R}{100} )^{n}}}}$

$\implies \bold{12500(1 + \frac{10}{100} )^{3}}$

$\implies \bold{12500(1 + \frac{1}{10})^{3}}$

$\implies \bold{12500(\frac{11}{10} )^{3}}$

$\implies \bold{12500 \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10}}$

$\implies \bold{\frac{25 \times 1331}{2}}$

$\implies \boxed{\bold{Rs.16637.50}}$

Now Compound Interest Find :

⇒Amount - Principal

⇒16637.50 - 12500

⇒₹4137.50

∵Compound Interest is less than Simple Interest that means Fabina paid more interest than Radha.

⇒4500 - 41375

⇒₹362.50(Answer)

$\rule{200}2$

Answer 2

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

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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