Question

Rachit borrows ₹70000 at 12% per annum for 2 years at simple interest and and Randhir borrow the same amount for the same time period at 10% per annum compounded, annually. who pay more interest and by how much?

Answer 1

For Rachit :
Amount 70000, Rate 12%, Time 2 Year.
His 2 Year Interest will be 16800.
Total He will pay 86800.

For Randhir.
Amount 70000 Rate 10. Year 2
Total Interest = 7000 + 7700 = 14700.
Total He Will pay 84700.

Difference is 2100.
So Rachit will will pay 3% More Interest Then Rachit.

Answer 2

Answer:

For Rachit :

P = 70,000

R = 12%

T = 2 years

S . I = p × r × t / 100

S . I = 70,000 × 12 × 2 / 100

S . I = 16,800

For Randhir :

same amount and same time period at 10 %

P = 70,000

R = 10 %

T = 2 years

A = p ( 1 + r / 100 ) ^ n

A = 70,000 ( 1 + 10 / 100 ) ²

A = 70,000( 100 + 10 / 100 ) ²

A = 70,000( 110 / 100 ) ²

A = 70,000 × 110 / 100 × 110 / 100

A = 84700

= 70,000 - 84700

= 14,700

Rachit has pay more

16,800 - 14,700

2100