Question

Joseph deposited 15000/- in a bank at the rate of 10% simple interest. Rafeek deposited 15000/- in another bank at the rate of 10% compound interest.

a) After 2 years, how much amount would Joseph get back? b) After 2 years, how much amount would
Rafeek get back?​

Answer 1

joseph = 18000/-

Rafeek = 18150/-

Answer 2

Joseph deposited 15000/- in a bank at the rate of 10% simple interest. Rafeek deposited 15000/- in another bank at the rate of 10% compound interest.

• a) After 2 years, We have to find the amount got back by Joseph.
• After 2 years, We have to find the amount got back by Rafeek.

For Joseph,

Principal, P = 15,000

Rate of interest, r = 10 % simple interest

Time, t = 2 years

SI = (P × r × t)/100

= (15000 × 10 × 2)/100

= 3000

Therefore amount after 2 years was got back by Joseph = 15,000 + 3,000 = 18,000

For Rafeek,

Principal, P = 15,000

Rate of interest, r = 10 % compound interest

Time, n = 2 years

using formula, A = P(1 + r/100)ⁿ

= 15000(1 + 10/100)²

= 15000 × 121/100

= 150 × 121

= 18150

Therefore amount after 2 years was got back by Rafeek = 18,150.