## shahiti borrows rs 12000 at 10 per annum for 3 years at simple interest and Mahiti bought the same amount for the same period at 8% per ann

Question

shahiti borrows rs 12000 at 10 per annum for 3 years at simple interest and Mahiti bought the same amount for the same period at 8% per annum compounded annually who pays more interest?
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1 month 2021-08-14T03:55:56+00:00 1 Answer 0 views 0

Rate of interest 10% per annum

∴ rate of interest for half-yearly=5%

Principal for the first six month=Rs.12000

Rate of interest=5%

∴ Amount after first six year=12000(1+

100

5

)

=12000×

100

105

=Rs.12600

Money Re-pay st the end of first six month=Rs.4000

∴ Principal for the second six month=12600−4000=Rs.8600

Rate of interest=5%

∴Amount after second six month(12 month)=8600(1+

100

5

)

=8600×

100

105

=Rs.9030

Money re -pay at the end of second six month=Rs.4000

Principal for the third six month(18 months)=9030−4000=Rs.5030

Rate of interest=5%

∴ Amount after third six month

=5030(1+

100

5

)

=5030×

100

105

=Rs.5281.50

∴ The payment at the end of 18 monthe in order to clear the entire lon=Rs.5281.50

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