Question

Rahim borrowed 50,000 for 2 years at 12% per annum C.I and Mani borrowed the same sum for the same time at 12.5% per annum simple interest. Which of these two gives less interest and by how much?​

Answer 1

Answer:

Mani shows less interest , difference 220

Step-by-step explanation:

For Rahim interest:

Principle = p = 50,000

Time = 2 yrs

Rate of interest = 12%

$CI = P[(1+i)^n-1]$

$CI = 50,000[(1+0.12)^2-1]$

$CI = 50,000[(1.12)^2-1]$

$CI = 50,000 * 0.2544$

$CI = 12,720 ------------(1)$

For Mani interest

$SI = p * i * t$

$SI = 50,000 * 12.5$% * 2

$SI = 12,500 ----------(2)$

Mani shows less interest , difference 220

Answer 2

Answer:

Total Amount borrowed by Jaya = Rs.50,000

let us first calculate the interest on that amount in the first year

Interest=100Principle×Time×Rate

Interest=10050000×1×12

Interest=Rs 6000

So,Jaya has to pay an interest of Rs. 6,000 by the end of the first year.

But she has paid an amount of Rs. 33,000

So,she has cleared a debt of Rs.33,000−Rs.6,000=Rs.27,000

Remaining debt of Jaya = Rs.50,000−Rs.27,000=Rs.23,000

By the end of the second year she has to pay an interest for an amount of Rs.23,000

Interest= 10023,000×1×15

Interest=Rs.3,450

So the total amount she has to pay to clear her debt= Amount+Interest

=Rs.23,000+Rs.3,450

=Rs.26,450

So, Jaya has to pay a total amount of Rs.26,450 to clear her debt