salina borrow Rs15,000 at 10% per annum for 3 years at Simple interest and Monika borrow the same amount for the same period at 8% annum compound interest, who pays more interest and by how much.
Answers
we know that
SI =PRT/100
=15000×10×3/100
=6500
hence, the interest paid by
Salina is rs 6500
Now,
interest paid by Monika
we know that
amount= P(1+R/100)n
=15000(1+8/100)3
=15000(108/100)3
= 15000(27/25)3
= 15000(27/25×27/25×27/25)
=24(27×27×27/25)
= 18895.68
CI = A-P
= 18895.68-15000
= 3896.68
6500>3896.68
hence Salina pays more interest
than Monika
6500 - 3896.68
=2603.32
Salina paid more 2603.32 than Monika
Answer:
Step-by-step explanation:
Given : Salina borrows 15,000 at 10% per annum for 3 years at simple interest and Monika borrows the same amount for the same time period at 8% per annum compounded annually
We have to find : Who pays more interest and by how much
Interest for Salina
Principle = p = 15,000
Rate of Interest = 10%
Time = 3 yrs
SI = PIT/100
SI = (15,000 * 0.1 * 3) = 4,500
Interest for Monika
Principle = p = 15,000
Rate of Interest = 8%
Time = 3 yrs
CI = p[(1+i)ⁿ - 1]
CI = 15,000[(1 + 0.08)³ - 1]
CI = 15,000[(1.08)³ - 1]
CI = 15,000 * 0.259712
CI = 3,895.68
Final Answer
4,500 > 3895.68
Hence Salina pays more interest than Monika
4,500 - 3895.68
= 604.32
Salina paid more 604.32 than Monika