Question

I borrowed rs 12000 from prasad at 6℅ per annum simple intrest for 2 years. Had i borrowed this sum at 6% per year compounded anually .what extra amount would i had to pay

Answer 1

Answer:

P = Rs 12000

T = 2 years

R = 6%

SI = 12000*2*6/100

= Rs 1440

Amount = Rs 13440

Amount in CI = P( 1+R/100) ^n

=Rs 13,483.2

Hence, the extra amount required is

( CI - SI ) = 13,483.2 - 13440

= Rs 43.2