Question

Raghav borrowed Rs. 10000 from her friends vismaya at. 6 % per annum simple interest for 2 years . Had he borrowed this sum at 6 % per annum compound interest what excess amount would he have to pay to her ..

Answer 1

Answer:

Below is the pic of proper explanation

Answer 2

In case of compound interest Raghav has to pay 36 Rs. more.

Step-by-step explanation:

If Rs. 10000 at 6% per annum simple interest rate for 2 years is borrowed then the sum will become

$S = 10000(1 + \frac{6 \times 2}{100}) = 11200$ Rs.

Again, if Rs. 10000 is borrowed for 2 years at the rate of 6% per annum compound interest then the sum will become

$C = 10000(1 + \frac{6}{100} )^{2} = 11236$ Rs.

Therefore, in case of compound interest Raghav has to pay (11236 - 11200) = 36 Rs. more.