Question

Muhammadbhai took a loan of Rs.60,000 at 9 % rate of interest for 3 years to repair his house. If Prafulchandra took the same amount at same rate of interest and for the same time period who will pay more interest and how much?

Answer 1

Dear Student,

◆ Answer -

Both Muhammadbhai and Prafulchandra will pay same interest. i.e. 16200 Rs.

◆ Explaination -

Formula for calculation of simple interest is given as -

Interest = Principal × rate of interest × time

Thus, interest calculated will always be the same if same amount is lent by two consumers at same rate of interest for same time.

Interest each have to pay is -

Interest = Principal × rate of interest × time

Interest = 60000 × 9/100 × 3

Interest = 16200 Rs

Therefore, both Muhammadbhai and Prafulchandra will have to pay same interest that is Rs. 16200.

Hope this helps...