Question

mr sharma borrowed rs ,24000 at 13% p.a.simple interest and an equal sum at 12% p.a. compound intetest.find the total interest earned by mr sharma in 2 years

Answer 1

for simple interest
SI=P x r x t /100
=24000 x 13 x 2/100=480 x 13=6240 Rs

for compound interest
CI=p {(1+r/100)^n-1}
=24000 {(1+12/100)^2-1}
=24000 {(1.12)^2-1}
=24000 x0.2544
=6105.6 Rs
hence total interest earned by Mr Sharma (6240+6105.6) Rs