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?

Views: 903 students

Found 3 tutors discussing this question

Emma Discussed

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?

11 mins ago

Discuss this question LIVE

11 mins ago

Text solutionVerified

Solution: Interest paid by Fabina

= 12500 * \frac{12}{100} * 3 = 4500

Rs
Amount repaid by Radha

= 12500 (1 + \frac{10}{100})^{3}

= 12500 * \frac{11}{10} * \frac{11}{10} * \frac{11}{10} = 16637.50

RsSo, interest paid by Radha

= 16637.50 - 12500 = 4137.50

Rs
So, Fabina paid more interest.

Was this solution helpful?

150

Report

One destination for complete JEE/NEET preparation

One destination to cover all your homework and assignment needs

Learn Practice Revision Succeed

Instant 1:1 help, 24x7

60, 000+ Expert tutors

Textbook solutions

Big idea maths, McGraw-Hill Education etc

Essay review

Get expert feedback on your essay

Schedule classes

High dosage tutoring from Dedicated 3 experts

Trusted by 4 million+ students

Stuck on the question or explanation?

Connect with our math tutors online and get step by step solution of this question.

231 students are taking LIVE classes

Question Text	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?
Answer Type	Text solution:1
Upvotes	150

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?

Text solutionVerified

Practice questions from similar books