shahiti borrows rs 12000 at 10 per annum for 3 years at simple interest and Mahiti bought the same amount for the same period at 8% per annum compounded annually who pays more interest?
(with steps pls )
Answers
Answer:
ANSWER
Rate of interest 10% per annum
∴ rate of interest for half-yearly=5%
Principal for the first six month=Rs.12000
Rate of interest=5%
∴ Amount after first six year=12000(1+
100
5
)
=12000×
100
105
=Rs.12600
Money Re-pay st the end of first six month=Rs.4000
∴ Principal for the second six month=12600−4000=Rs.8600
Rate of interest=5%
∴Amount after second six month(12 month)=8600(1+
100
5
)
=8600×
100
105
=Rs.9030
Money re -pay at the end of second six month=Rs.4000
Principal for the third six month(18 months)=9030−4000=Rs.5030
Rate of interest=5%
∴ Amount after third six month
=5030(1+
100
5
)
=5030×
100
105
=Rs.5281.50
∴ The payment at the end of 18 monthe in order to clear the entire lon=Rs.5281.50
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