1.

yshruti borrows Rs 12000 at 10% per annum for 3 years at simple interest and Shaliniborrows the same amount for the same period at 8% per annum compoundedannually. Who pays more interest and by how much?

Answer»

AMOUNT FOR SHRUTI = P*[1+ (R/100)]^NAMOUNT FOR SHRUTI = 12000*[1 + 10/100]^3= 12000*(11/10)^3= 12*11*11*11= Rs. 15972INTEREST FOR SHRUTI = AMOUNT - PRINCIPAL= 15972 - 12000= Rs. 3972

INTEREST FOR SHALINI = PRT/100= (12000*10*3)/100= Rs. 3600. SHRUTI PAYS MORE INTEREST BY ( 3972 - 3600) = Rs. 372

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