Question

I borrowed rupees 12000 from jamesh at 6% per annum simple interest for 2 years had borrowed this sum at 6% per annum compounded interest what extra amount would I have to pay

Answer 1

p=1200
R=6%
T=2years
S.I=P*R*T/100
S.I=12000*6*2/100
S.I=1440

For Compound Interest
P=1200
R=6%
T=2
A=P*(1+R/100)^T
=12000*(1+6/100)^2
=12000*106/100*106/100
=13483.20

CI=13483.20-12000
=1483.20

thus,excess amount =Rs 1483.20-Rs 1440
=Rs 43.20

Answer 2

I think it helps you.........