Question

i borrowed 12000 from prasad at 6% per annum simple intrest for 2 years.had i borrowed this sum at 6% per anum compounded anually,what extra amount would i have to pay

Answer 1

Simple interest formula is PTR/100

Answer 2

at S.I = P×R×T÷100
12000×6×2
144000 ÷ 100= 1440
at compounded annum = P(1+R÷100)2
12000(1+6÷100)2
12000×106÷100×106÷100
=134832000÷10000
=13483.2
C.I = amount -principal
= 13483.2- 12000 =1483.2
amount at S.I - Amount
1483.2 - 1440= 83.2