Question

In order to buy a lift pump for his well Ram borrowed Rs 16,000

for 3 years at a rate of compound interest of 12.5 p.c.pa. What would have been the difference in the interest on this principal had

he borrowed it at simple interest ?​

Answer 1

Step-by-step explanation:

p=16000

t=3

r=12.5

C.I=16000(1+12.5/100)^3 -16000

=6781.25

S.I=(16000×3×12.5)÷100=6000

C.I - S.I=6781.25 - 6000=781.25