Question

I borrowed 12000 from Amit at 6% per annum simple interest for 2 years. Had i borrowed this sum at 6% per annum compound intrest, what excess amount would i have to pay?

Answer 1

answer is 43.2

time 1st year 2nd year

simple Interest 6% of 12000 6% of 12000

compound interest 6% of 12000 6% of 12000

+ 6% of 6% of 12000

take difference then it will be 43.2