Question

Reena and Ruchira borrowed rupees 60000and50000 respectively for a period of 3 years . Reena paid simple interest at the rate of 10%p.a., while Ruchira paid compound interest at the rate of 10%p.a. compounded anually. Who paid more interest and by how much ?

Answer 1

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

Answer 2

Answer:

bey it is in attachment

Step-by-step explanation:

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