Advertisements
Advertisements
Question
Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?
Advertisements
Solution
Interest paid by Fabina = `"P x R x T"/100`
= Rs `((12500xx12xx3)/100)` = Rs4500
Amount paid by Radha at the end of 3 years = A = `P(1 + R/100)^n`
A = Rs `[12500(1 + 10/100)^3]`
= Rs `(12500xx 110/100xx110/100xx110/100) = Rs 16637.50`
C.I. = A − P = Rs 16637.50 − Rs 12500 = Rs 4,137.50
The interest paid by Fabina is Rs 4,500 and by Radha is Rs 4,137.50.
Thus, Fabina pays more interest.
Rs 4500 − Rs 4137.50 = Rs 362.50
Hence, Fabina will have to pay Rs 362.50 more.
RELATED QUESTIONS
Rohit deposited Rs 8000 with a finance company for 3 years at an interest of 15% per annum. What is the compound interest that Rohit gets after 3 years?
Mewa Lal borrowed Rs 20000 from his friend Rooplal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually. Find his gain after 2 years.
Find the compound interest on Rs 8000 for 9 months at 20% per annum compounded quarterly.
Find the amount of Rs 4096 for 18 months at
Rekha deposited Rs 16000 in a foreign bank which pays interest at the rate of 20% per annum compounded quarterly, find the interest received by Rekha after one year.
Find the amount of Rs 12500 for 2 years compounded annually, the rate of interest being 15% for the first year and 16% for the second year.
What sum of money will amount to Rs 45582.25 at \[6\frac{3}{4} %\] per annum in two years, interest being compounded annually?
For calculation of interest compounded half yearly, keeping the principal same, which one of the following is true?
When principal P is compounded semi-annually at r % per annum for t years, then amount ______.
The compound interest on a sum of Rs P for T years at R% per annum compounded annually is given by the formula `P(1 + R/100)`.
