Shruthi borrows Rs.12000 at 10 % for 3 years simple interest and Shalini borrowed the same
amount for same period at 10% per annum compound annually. Who paid more interest and
by how much?
Answers
Step-by-step explanation:
use simple interest formula for both which is in the given image.
then when the ans comes find the difference
Answer:
Shalini paid more, by ₹372.
Step-by-step explanation:
Calculating the interest for Shruthi:
Given:
- Principal (P) = ₹12,000
- Rate of interest (R) = 10%
- Time (T) = 3 years
To find:
Simple Interest (S.I)
Method to find:
S.I = PRT/100
⇒ S.I = (12,000 * 10 * 3)/100
⇒ S.I = ₹3,600
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Calculating the interest for Shalini:
Given:
- Principal (P) = ₹12,000
- Rate of interest (R) = 10%
- Time (n) = 3 years
To find:
Compound Interest (C.I)
(Compounded Annually)
Method to find:
First, we need to find the Amount (A) she will have to pay.
A = P(1 + R/100)ⁿ
⇒ A = 12,000 * (1 + 10/100)³
⇒ A = 12,000 * (110/100)³
⇒ A = 12,000 * 110/100 * 110/100 * 110/100
⇒ A = ₹15,972
Now, we can find the Compound Interest (C.I).
C.I = A - P
⇒ C.I = ₹15,972 - ₹12,000
⇒ C.I = ₹3,972
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Calculating the difference in the interest paid by them:
Clearly, Shalini has to pay the greater interest. So, the difference in their interest will be:
(Interest paid by Shalini) - (Interest paid by Shruthi)
₹3,972 - ₹3,600
⇒ ₹372
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Hope it helps!