Question

Two friends Rohit and Shyam lent some loans and they have to pay it in 3 equal installments of 40000 each. Rohit pays 10% at SI while Shyam pays 10% p.a. at CI. Find the difference between their payments?

Answer 1

Answer:

The difference between their payments is Rs 2149.9

Step-by-step explanation:

Given as :

For Rohit

Loan amount = Rs P

Amount paid in 3 installment = Rs 40,000 each

Amount =  3 × Rs 40,000 = Rs 120000

The rate of interest = 10% at simple interest

Simple interest = $\dfrac{Principal\times rate\times time}{100}$

A-P = $\dfrac{P \times10 \times 3}{100}$

or, 120000 - P = 0.3 P

or, 1.3 P = 120000

∴  p = $\dfrac{120000}{1.3}$

i,e P = Rs 92307.6

The payment amount of Rohit = rs 92307.6

Again

For Shyam

Amount = P' × $(1+\dfrac{rate}{100})^{Time}$

Or, 120000 = P' × $(1+\dfrac{10}{100})^{3}$

or,  120000 = P' × 1.331

∴ P' = Rs 90157.7

The payment amount of Shyam = Rs 90157.7

So, The difference between their payments = P - P' =  Rs 92307.6 -  Rs 90157.7  = rs 2149.9

Hence, The difference between their payments is Rs 2149.9 Answer