I borrowed Rs 12,000 from Jamshed at 6% per annum simple interest for 2 years. Had I borrowed this sum at 6% per annum compound interest, what extra amount would I have to pay?

Here, Principal (P) = Rs.12,000, Time, T = 2 years, Rate of interest (R) = 6% p.a.

Simple Interest = PRT/100

= Rs. 1,440

Had he borrowed this sum at 6% p.a., then

Compound Interest =

= Rs. 13,483.20 – Rs. 12,000

= Rs. 1,483.20

Difference in both interests = Rs. 1,483.20 – Rs. 1,440.00

= Rs. 43.20