Question

Ratna Singh borrows rupees 16000 12.5 rate of interest for 3 years to set up a motor pump on the well for Gurudev corporate society at compound interest if he would have taken this Loan at simple interest then what would be the difference at interest

Answer 1

Hey there ✌̤✌̤✌̤
ᴜʀ ᴀɴꜱ ɪɴ ʜᴇʀᴇ

●INTEREST = Interest is the price paid by a borrower for the use of a lender's money.

TYPE OF INTEREST----- there are 2 type of interest--
●Simple Interest
●Compound Interest


♥Simple Interest = Simple interest is the computed on the principal for the entire period of borrowing.
Formula -----
I = Pit
A = P + I
I = A - P

here
I = Amount of Interest
P = principal ( initial value of an investment)
A = Accumulated amount ( Final value of an investment)
i = Annual interest rate in decimal
t = time in years


♥Compound Interest = compound interest as the interest that accrues when earnings for each specified period of time added to the principal thus increasing the principal base on which subsequent interest is compound.

Formula -
A = p (1 + i)^n
where,
i = Annual rate of interest
n = Number of conversion period per year
INTEREST = An - P
or
= P ( 1 + i)^n - P

Let, move to ur Question -----

ɢɪᴠᴇɴ ----
ᴩ= 16000
ʀ= 12.5
ᴛ = 3 yᴇᴀʀꜱ
ᴄɪ - ꜱɪ = ???


ꜱᴏ ᴡᴇ ᴋɴᴏᴡ ᴛʜᴀᴛ ,

ᴄɪ = ᴩ ( 1+ ʀ)^ɴ -ᴩ

ᴀɴᴅ ꜱɪ = ᴩʀᴛ/100

ꜱᴏ ,,,
ᴄɪ= 16000 ( 1 + 0.125)^3 - 16000
= 16000 ( 1.125)^3 -16000
= 16000 ( 1.42383) -16000
= 22781.25 -16000
=₹ 6781.25


ᴀɴᴅ ꜱɪ = 16000 *12.5*3 /100
= 600000 / 100
= ₹ 6000

ꜱᴏ ᴛʜᴇ ᴅɪꜰꜰᴇʀᴇɴᴄᴇ = ᴄɪ - ꜱɪ
= 6781.25 - 6000
= ₹ 781.25

☺ʜᴏᴩᴇ ɪᴛ ʜᴇʟᴩꜱ☺
♥ꜰᴇᴇʟ ꜰʀᴇᴇ ᴛᴏ ᴀꜱᴋ ᴀɴy qᴜᴇʀy♥

Answer 2

ɢɪᴠᴇɴ ----
ᴩ= 16000
ʀ= 12.5
ᴛ = 3 yᴇᴀʀꜱ
ᴄɪ - ꜱɪ = ???


ꜱo we know that,

ᴄɪ = ᴩ ( 1+ ʀ)^ɴ -ᴩ

ᴀɴᴅ ꜱɪ = ᴩʀᴛ/100

ꜱᴏ ,,,
ᴄɪ= 16000 ( 1 + 0.125)^3 - 16000
= 16000 ( 1.125)^3 -16000
= 16000 ( 1.42383) -16000
= 22781.25 -16000
=₹ 6781.25


ᴀɴᴅ ꜱɪ = 16000 *12.5*3 /100
= 600000 / 100
= ₹ 6000

ꜱo the difference = ᴄɪ - ꜱɪ
= 6781.25 - 6000
= ₹ 781.25


❤hope it helps u ❤