Question

I borrowed 12,000 from Jamshed at 6% per annum simple interest for 2 years.
Had I borrowed this sum at 6% per annum compound interest, what extra amount
would I have to pay?
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Answer 1

Answer:

13440

Step-by-step explanation:

Principal = 12000

Annual interest rate = 6%

Time = 2 year

So,

Interest = Principle × Annual interest rate × Time /100

= 12000×6×2/100

= 1440

Now I have to pay (12000+1440) = 13440