Question

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

Answer 1

 Principal=rs 12000
Rate of interest=6%
Time=2years

A.T.P.
Simple interest= P*T*R\100
                      =(12000*2*6)\100
                       =1440
Therefore,S.I=Rs1440

Principal=rs 12000
Rate of interest=6%
Time=2years
  Interest of 1st year=P*T*R/100
                             =12000*1*6\100
                             =720
Amount of 1st year  =Rs12000+720=12720
   Interest of 2nd year=P*T*R\100
                               =12720*1*6\100
                               =763.2
Amount of 2nd year= Rs 12720+763.2=13483.2
Total Amount=Rs.13483.2
Compound Interest=Total amount-Principal
                            =13483.2-12000
                            =Rs.1483.2