Kusum and ravi borrowed 80,000 and 60,000 respectively for w period of 3 year.Kusum paid simple interest at the rate of 20% per annum, while Ravi paid compound interest at the rate of 20% per annum compounded annually. who paid more interest and by how much?
Answers
Answer:
1. Kusum paid more interest than Ravi
2. Kusum paid Rs.(48,000 - 43,680) = Rs.4,320 more interest than Ravi
Step-by-step explanation:
Kusum: Simple interest
P = amount borrowed in Rupees = 80000
R = rate of interest per cent per year = 20
T = time period in years = 3
SI = simple interest
A = amount to be repaid after time period T
SI = (P*R*T/100)
= (80000*20*3)/100
= 48000
Interest paid by Kusum = Rs.48,000 .........(i)
Ravi: Compound interest
P = amount borrowed in Rupees = 60000
R = rate of interest per cent per year = 20
T = time period in years = 3
A = amount repaid after time period T
CI = Compound Interest
A = P*(1 + R/100)^T
= 60000*(1 + 20/100)^3
= 60000*(1.2)^3
= 60000*1.728
= 103680
CI = A - P
= 103680 - 60000
= 43680
Interest paid by Ravi = Rs.43,680 ....(ii)
From (i) and (ii), we get:
1. Kusum paid more interest than Ravi
2. Kusum paid Rs.(48,000 - 43,680) = Rs.4,320 more interest than Ravi
Answer:
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Step-by-step explanation:
Answer for this question is Rs 4,320
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