Question

Reena and ruchira borrowed ₹500000 and ₹600000 respectively for a period of 3years.

Answer 1

Step-by-step explanation:

Reena

Simple interest = principle × rate × time

Rate = 10%

Principle = 60000

Time = 3 years

Simple interest = 60000 × 3 × 0.1 = 18000

Rs 18000

Ruchira

Compound interest = Accumulated amount less the principle

Accumulated amount = P(1 + i)ⁿ

P = 50000

i = 10%

n = 3

A = 50000(1.1)³ = 66550

Compound interest = 66550 - 50000 = 16550

Rs 16550

Reena paid more interest by :

18000 - 16550 = 1450

Rs 1450