What is the compound interest in RS on Rs 12500 at the rate of 12% per annum compounded yearly for 2 years?

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?

For Fabina:

P = Rs 12500

T = 3 years

R = 12% p.a.

For Radha:

P = Rs 12500

T = 3 years

R = 10% p.a. (Compounded annually)

∴   CI = Rs 16637.5 - Rs 12500 = Rs 4137.50

Difference = Rs 4500 - Rs 4137.50 =  Rs 362.50

Thus, Fabina pays Rs 362.50 more.

327 Views

Kamala borrowed Rs 26,400 from a Bank to buy a scooter at a rate of 15% p.a. compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?

(Hint: Find A for 2 years with interest is compounded yearly and then find SI an the 2nd year for 4/12 tears.)

Here, we shall calculate the amount for 2 years using the CI formula. Then this amount will become the principal for next 4 months, i.e. 4/12 years.

119 Views

A shopkeeper bought two TV sets at Rs 10,000 each. He sold one at a profit 10% and the other at a loss of 10%. Find whether he made an overall profit or loss.

1238 Views

Calculate the amount and compound interest on:

(a) Rs 10,800 for 3 years at 121/2 % per annum compounded annually.

(b) Rs 18,000 for 21/2 years at 10% per annum compounded annually.

(c) Rs 62,500 for 11/2 years at 8% per annum compounded half yearly

(d) Rs 8,000 for 1 year at 9% per annum compounded half yearly.

(You could use the year by year calculation using SI formula to verify.)

(e) Rs 10,000 for 1 year at 8% per annum compounded half yearly.

1355 Views

A milkman sold two of his buffaloes for Rs 20,000 each. On one he made a gain of 5% and on the other a loss of 10%. Find his overall gain or loss.(Hint: Find CP of each.)

192 Views

Find the buying price of each of the following when 5% ST is added on the purchase of

(a) A towel at Rs 50

(b) Two bars of soap at Rs 35 each

(c) 5 kg of flour at Rs 15 per kg

925 Views

Fabina borrows Rs. 12500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same period at 10% per annum, compounded annually. Who paid more interest and by how much?

Answer

Verified

Hint:We are going to use two different formulas for finding simple interest and compound interest. And using these formulas we will find the value of interest and then we will see which one has to give more interest and by how much.Complete step-by-step answer:
Let’s first write the formula for simple interest and compound interest.
$SI=\dfrac{PRT}{100}$
$CI=P{{\left( 1+\dfrac{R}{100} \right)}^{T}}-P$
Now we know the values of P,R,T from the question.
Let’s first find the value of simple interest by using $SI=\dfrac{PRT}{100}$
P = 12500
R = 12
T = 3
Therefore, SI will be,
$\begin{align}
  & \dfrac{12500\times 12\times 3}{100} \\
 & =4500 \\
\end{align}$
The amount of interest paid by Fabina will be 4500.
Next they said that Radha borrows the same amount for the same period ,compounded annually.So we have to find compound interest.
Now, let’s find the value of compound interest by using $CI=P{{\left( 1+\dfrac{R}{100} \right)}^{T}}-P$
P = 12500
R = 10
T = 3
Therefore, CI will be,
$\begin{align}
  & 12500{{\left( 1+\dfrac{10}{100} \right)}^{3}}-12500 \\
 & =12500{{\left( \dfrac{11}{10} \right)}^{3}}-12500 \\
 & =16637.5-12500 \\
 & =4137.5 \\
\end{align}$
The amount of interest paid by Radha will be 4137.5
From this we can say that Fabina has to pay more interest by $4500 – 4137.5 = 362.5$

Note: Here we have used the formula of finding simple interest and compound interest with the help of that we have found the difference between the two interests. Hence, these two formulas must be remembered if one needs to solve this question correctly. And keep in mind that in place of R we have put the value in percentage as we are already dividing it by 100.

What is the compound interest in RD of Rs 12500 at the rate of 12% per annum compounded yearly for 2 years?

What is the compound interest in RS on Rs 12500 at the rate of 12% per annum compounded yearly for 2 years 1 point 2000 3400 3180 1200?

What is interest on Rs 12500?

What is the compound interest on rupees 20000 at 10% for 2 years?