Q. 94.6( 46 Votes )
I borrowed Rs. 12000 from Prasad at 6% per annum simple interest for 2 years. Had I borrowed this sum at 6% per annum compounded annually, what extra amount would I have to pay?
Answer :
Principal (P) = Rs. 12000
Rate of interest (R) = 6%
Time period (T) = 2years
I = Rs. 1440
∴ Interest for 2 years is Rs. 1440
This sum to be borrowed at 6% per annum compounded annually,
Principal (P) = Rs. 12000
Rate of interest (R) = 6%
Time period (n) = 2years
= 12000×1.062
= 13483.2
∴ Amount = Rs. 13483.2
= 13483.2-12000
∴ Compound Interest = Rs. 1483.2
∴ The difference in interest = 1483.2 - 1440
= Rs. 43.2
∴ The difference in interest is Rs. 43.2
Rate this question :
How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
PREVIOUSArif took a loan of Rs. 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after 1years, if the interest is compounded annually and compounded half yearly.NEXTIn a laboratory the count of bacteria in a certain experiment was increasing at the rate of 2.5% per hour. Find the bacteria at the end of 2 hours if the count was initially 5, 06,000
Related Videos
Quiz | Comparing Quantities30 mins
Quiz | Comparing Quantities50 mins
Quiz | Percentage35 mins
One Step Ahead of Simple Interest44 mins
Make a Solid Grip on Ratios36 mins
Quiz | Calculating Compound Interest Really Compound?46 mins
Foundation | Direct & Inverse Proportions57 mins
Ratio and Percentage28 mins
Quiz | Simple & Compound Interest35 mins
Quiz | Comparing Quantities47 mins




















Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
view all courses
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation


RELATED QUESTIONS :