Question

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

Answer 1

Answer:

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Step-by-step explanation:

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Answer 2

Answer:

Here, we are given the principal amount as Rs.12000 and the time period as 2 years. The rate of simple interest is 6% per annum and the rate of compound interest is 6% per annum. We have to compare the amount formed at the end of two years and find out the extra compound amount by amount from simple interest.

Let us calculate the amount of both interests one by one.

Using simple interest:

Principal amount is Rs.12000 therefore, P = 12000. Rate of interest is 6% per annum, therefore R = 6. Time period is given as 2 years, therefore T = 2. Simple interest is given by SI=P×R×T100SI=P×R×T100 where P is principal amount, R is rate of interest, T is time period. Therefore, simple interest becomes

⇒SI=12000×6×2100⇒120×12⇒1440⇒SI=12000×6×2100⇒120×12⇒1440

Hence, simple interest (SI) is Rs.1440. We have to find the total amount. Amount is given as A = P + I where P is principal amount, I is interest. Therefore, amount becomes,

⇒A=12000+1440⇒13440⇒A=12000+1440⇒13440

Amount by simple interest is Rs.13440 . . . . . . . . . . . . . . . . . (1)

Using compound interest:

P = 12000, R = 6% per annum and T = 2 years.

We know, compound interest can be calculated as A=P(1+R100)TA=P(1+R100)T so we get:

⇒A=12000(1+6100)2⇒A=12000(1+6100)2

Taking LCM in the bracket we get:

⇒A=12000(