Question

Suresh borrows Rs. 12500 at 10% per annum for 2 years at simple interest and Geeta borrows the same amount for the same time period at 10% per



annum, compounded annually. Who pays more interest and by how much?​

Answer 1

Answer:

simple Interest

SI=Rs

100

12500×12×3

​

=Rs4500

Compound Interest

Interest for the 1st year=Rs

100

12500×10×1

​

=Rs1250

Amount After the 1st year=Rs12500+Rs1250

=13750

Interest for the 2nd year=

100

13750×10×1

​

=1375

Amount After the 2nd year=13750+Rs1375

=15125

Interest for the 3rd year=

100

15125×10×1

​

=1512.50

Amount After the 3rd years=15125+1512.50

=16637.50

Compound Interest=16637.50−Rs 12500

=4137.50

Sujata pays more interest than Radhika by Rs(4500−4137.50)=Rs362.50

Step-by-step explanation:

I don't know the explanation