Question

Rishi borrowed 20,000 for 3 years at the rate of 8.5% p.a. simple interest, while John
borrowed the same amount for the same period at 8% p.a. compounded annually. Who
paid less interest and by how much?​

Answer 1

Answer:

si=5100₹

ci- 5194.24₹

Rishi paid less by 94.24₹

Step-by-step explanation:

si= 2 0000×3×8.5÷100 =5100₹

CI =

20000( {1 + 8 \div 100)}^{3} - 2000020000(1+8÷100)3−20000

=25194.24-20000=5194.24₹

SI = (20000×3×8.5)÷100 =5100₹

less amount paid = 5194.24-5100=94.24₹Rishi