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I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay?
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I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 ye...
Interest Calculation for Simple Interest
To calculate the total amount to be paid with simple interest, we use the formula:
Total Amount (A) = Principal + Interest
Where:
- Principal = Rs 12,000
- Rate = 6% per annum
- Time = 2 years
First, we calculate the interest:
- Interest = (Principal × Rate × Time) / 100
- Interest = (12000 × 6 × 2) / 100
- Interest = Rs 1440
Now, total amount with simple interest:
- Total Amount = Principal + Interest
- Total Amount = 12000 + 1440 = Rs 13,440
Interest Calculation for Compound Interest
For compound interest, the formula used is:
Total Amount (A) = Principal × (1 + Rate/100)^Time
Where:
- Principal = Rs 12,000
- Rate = 6%
- Time = 2 years
Calculating the total amount with compound interest:
- Total Amount = 12000 × (1 + 6/100)^2
- Total Amount = 12000 × (1 + 0.06)^2
- Total Amount = 12000 × (1.06)^2
- Total Amount = 12000 × 1.1236 = Rs 13,483.20
Extra Amount to be Paid
To find the extra amount paid when using compound interest:
- Extra Amount = Compound Amount - Simple Amount
- Extra Amount = 13,483.20 - 13,440 = Rs 43.20
Conclusion
If you had borrowed the Rs 12,000 at 6% per annum compounded annually instead of simple interest, you would have to pay an extra amount of Rs 43.20 over the 2 years.
To calculate the total amount to be paid with simple interest, we use the formula:
Total Amount (A) = Principal + Interest
Where:
- Principal = Rs 12,000
- Rate = 6% per annum
- Time = 2 years
First, we calculate the interest:
- Interest = (Principal × Rate × Time) / 100
- Interest = (12000 × 6 × 2) / 100
- Interest = Rs 1440
Now, total amount with simple interest:
- Total Amount = Principal + Interest
- Total Amount = 12000 + 1440 = Rs 13,440
Interest Calculation for Compound Interest
For compound interest, the formula used is:
Total Amount (A) = Principal × (1 + Rate/100)^Time
Where:
- Principal = Rs 12,000
- Rate = 6%
- Time = 2 years
Calculating the total amount with compound interest:
- Total Amount = 12000 × (1 + 6/100)^2
- Total Amount = 12000 × (1 + 0.06)^2
- Total Amount = 12000 × (1.06)^2
- Total Amount = 12000 × 1.1236 = Rs 13,483.20
Extra Amount to be Paid
To find the extra amount paid when using compound interest:
- Extra Amount = Compound Amount - Simple Amount
- Extra Amount = 13,483.20 - 13,440 = Rs 43.20
Conclusion
If you had borrowed the Rs 12,000 at 6% per annum compounded annually instead of simple interest, you would have to pay an extra amount of Rs 43.20 over the 2 years.
Community Answer
I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 ye...
43.20 RS
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I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay?.
I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for I borrowed rs12000 from Prasad at 6% per annum simpleinterest for 2 years.had i borrowed this sum at 6% per annum compounded annualy ,what extra amount would I have to pay?.
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