Question

if Pawan borrowed an amount of rupees 14000 from Rahul with simple interest rate of 8% per annum for 2 years. what extra money should we pay if the sum is compounded with same interest rate and time period ?​

Answer 1

$HOPE\;IT\;HELPS\;YOU$

Answer 2

Answer:

₹89.6

Explanation:

Simple Interest = P x R x T / 100

                         = 14000 x 8 x 2 / 100

                         = ₹ 2240

Compound Interest = Amount - Principal

Amount = P(1+R/100)^t

             = 14000(1+8/100)^2

             = ₹16329.6

Compound Interest = 16329.6 - 14000

                                 = ₹2329.6

Difference in Compound and Simple Interest = ₹2329.6 - ₹2240

                                                                               = ₹ 89.6

∴ The extra money that Pawan should pay if the sum is compounded with same interest rate and time period is ₹ 89.6