0

Guest

Courses New

Fabina borrows ₹ 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?

Fabina borrows ₹ 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? 

Grade:12

1 Answers

Harshit Singh
askIITians Faculty 5963 Points
3 years ago
Dear Student

Interest paid by Fabina =P x R x T
100
=12500 x 3 x 12
100
= 4500
Amount paid by Radha at the end of 3 years =A =P (1 +R/100 )^n
=₹ [12500(1+ 10/100 )^3]
=₹ [12500 × (110/100)^3]
=₹ 16637.50
C.I. = A − P = ₹ 16637.50 − ₹12500 =₹4,137.50
The interest paid by Fabina is₹4,500 and by Radha is₹4,137.50.
∴ Fabina pays more interest.
₹ 4500 − ₹4137.50 =₹362.50
Hence, Fabina will have to pay₹362.50 more

​Thanks

Think You Can Provide A Better Answer ?

Other Related Questions on 8 grade maths

View all Questions »

ASK QUESTION

Get your questions answered by the expert for free

Answer and earn gift vouchers

Win Gift vouchers upto Rs 500/-

View courses by askIITians

Design classes One-on-One in your own way with Top IITians/Medical Professionals

Click Here Know More

Complete Self Study Package designed by Industry Leading Experts

Click Here Know More

Live 1-1 coding classes to unleash the Creator in your Child

Click Here Know More

a Complete All-in-One Study package Fully Loaded inside a Tablet!

Click Here Know More