Q2 of 30 Page 128

Sunitabi borrowed Rs 60,000 at 9 p.c.p.a. simple interest for 3 years to have her house repaired. Had she borrowed the same sum for the same period and the same rate at compound interest, how much more interest would she have had to pay?

Given: Principal (P) = Rs. 60000, Rate of Interest (R) = 9% and Number of years (n) = 3year

As simple interest (SI):




⇒ SI = Rs. 16200


For compound interest:


As Amount (A):





⇒ A = Rs. 77701.7


As compound interest (CI),


CI = A - P


CI = 77701.7 - 60000


⇒ CI = Rs.17701.74


Difference between CI and SI is :


D = CI – SI


⇒ D = 17701.74 – 16200


⇒ D = Rs. 1501.74


The more interest would sunitabi have had to pay = Rs.1501.74


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