Question

In a bank, Suresh borrows ₹ 5000 at 12% per annum for 2 years at simple interest and Ravi borrows the same amount for the same time period and at same rate of interest but compounded annually.


Simple interest paid by Suresh
a) ₹1000 b) ₹1100 c) ₹1200 d) ₹1500

2. Compound interest paid by Ravi
a) ₹1272
b) ₹1200 c) ₹1500 d) ₹2000

3. The amount when interest is compounded annually a) ₹6000
b) ₹6272 c) ₹6500 d) ₹6800
4. Who pays more interest? a) Suresh
b) Ravi
c) Neither Suresh nor Ravi d) Both

Answer 1

Answer:

a. 1200

b. 1272

c. 6272

d. Ravi