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Ex 8.3, 4 - I borrowed Rs 12,000 from Jamshed at 6% per annum simple

Ex 8.3, 4 - Chapter 8 Class 8 Comparing Quantities - Part 2
Ex 8.3, 4 - Chapter 8 Class 8 Comparing Quantities - Part 3

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Ex 8.3, 4 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?Simple Interest Principal (P) = 12,000 Rate (R) = 6% per Annum Time (t) = 2 years. Interest (I) = (๐‘ƒ ร— ๐‘… ร— ๐‘‡)/100 = (12000 ร— 6 ร— 2)/100 = 120 ร— 12 = 1440 Compound Interest Principal (P) = 12,000 Rate (R) = 6% per Annum Time (t) = 2 years. Amount (A) = (1+๐‘…/100)^๐‘› A = 12000 ร— (1+ 6/100)^2 = 12000 ร— ((100 + 6)/100)^2 Now Amount (A) = Principal + Interest = 12000 + 1440 = 13440 = 12000 ร— ((100 + 6)/100)^2 = 12000 ร— (106/100)^2 = 12000 ร— (106 ร— 106)/(100 ร—100) = 12000 ร— 11236/10000 = (12 ร— 11236)/10 = 134832/10 = 13483.2 โˆด Amount using Simple interest = Rs 13440 & Amount using Compound interest = Rs 13483.2 Extra Amount = Amount Using Compound interest โ€“ Amount using Simple Interest = 13483.2 โˆ’ 13440 = 43.2 โˆด I have to Pay Rs 43.20 extra

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