Question

U borrowed rs 12000 from zakir at 6% per annum simple interest for 2 years. Had i borrowed this sum at 6% per annum compound interest, what extra amount i have to pay?

Answer 1

$<b><u>Mine:-</u></b>$

Principle = ₹12000
Rate of interest = 6%
Number of years = 2 years

Simple Interest = $\frac{P\:×\:N\:×R}{100}$

= $\frac{12000\:×\:2\:×6}{100}$

= ₹1440

$<b><u>Yours:-</u></b>$

Principle = ₹12000
Rate of interest = 6%
Number of years = 2 years

Compound Interest:-

Amount = P($\frac{1 + R}{100})^n$

= 12000($\frac{1 + 6}{100})^2$

= 12000($\frac{106}{100})^2$

= 12000($\frac{106}{100}$)($\frac{106}{100}$)

= ₹13483.20

Interest = Amount - Principle

= ₹13483.20 - ₹12000

= ₹1483.20

You have to pay more interest and by ₹1483.20 .

Answer 2

Answer:

Step-by-step explanation: