Q9 of 48 Page 118

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?

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


More from this chapter

All 48 →
7

Find Compound interest paid when a sum of Rs. 10000 is invested for 1 year and 3 months at 8 % per annum compounded annually.

8

Arif 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.

 10

In 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

 11

Kamala borrowed Rs. 26400 from a bank to buy a scooter at a rate of 15% per annum compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?