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yuradex [85]
2 years ago
15

I borrowed 12000 rupees from jamshed at 6 percent per annum simple interest for 2 years .Had i borrwed this sum at 6 percent per

annum compound interest, what extra amount would i gave to pay ?
Mathematics
1 answer:
Leni [432]2 years ago
6 0

Answer:

43.2 Rupees

Step-by-step explanation:

To determine how much extra will be paid, we calculate the Amount at Simple Interest and the Amount at Compound Interest and Make Comparisons.

Now, Principal=12000

Rate=6%

Time= 2 years

Amount at Simple Interest= Principal+ Simple Interest

=P+(PRT)/100

=12000+(12000X6X2)/100

=12000+1440

=13440 Indian Rupees

Amount at Compound Interest

A=P(1+r)ⁿ

=12000(1+0.06)²

=12000(1.06)²

=13483.2 Indian Rupees

Difference=Amount at Compound Interest- Amount at Simple Interest

=13483.2-13440

=43.2 Indian Rupees

If he had borrowed at Compound interest, he would have paid an extra 43.2 Rupees

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It is very important to go through all the details that have been provided in the question. These information's will come in very handy while getting to the solution for the answer. Now let us concentrate on the problem in hand.
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