# fabina borrows ₹ 12 , 500 at 12 % per annum for 3 years at simple interest and radha borrows the same amount for the same time period at 10 % per annum, compounded annually. who pays more interest and by how much?

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## Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radhs bororows the same amount for the same time period at 10% per annum compounded annually. Who pays more interest and by how much?

Click here👆to get an answer to your question ✍️ Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radhs bororows the same amount for the same time period at 10% per annum compounded annually. Who pays more interest and by how much?

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## Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radhs bororows the same amount for the same time period at 10% per annum compounded annually. Who pays more interest and by how much?

Medium Open in App Solution Verified by Toppr We have,

Principal value (p) = Rs 12,500

Time (t) = 3years.

Rate of interest (R) = 12% P.a.

now, simple interest S.I. = 100 P×R×t = 100 12500×12×3

=Rs4500 (for fabina)

Again, Given that,

principal value (p)=12,500

Time(t)=3years Rate(R)=10%p.a. now, Amount (A) = P(1+ 100 R ) n =12,500(1+ 100 10 ) 3 =12,500(1+ 10 1 ) 3 =12,500× 10 11 × 10 11 × 10 11 =125× 10 1331

=Rs16,637.50 (For Radha)

C.I. for Radha

=Amount−principalvalue.

=16,637.50−12,500 =4137.50

Then, Fabina pays more interest

=4,500−4137.50 =362.50Rs. Hence, Interest=Rs362.50

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## Fabina borrows ₹ 12,500 at 12 % per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10 % per annum, compounded annually. Who pays more interest and by how much?

Fabina borrows ₹ 12,500 at 12 % per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10 % per annum, compounded annually. Who pays more interest and by how much?

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Fabina borrows ₹ 12,500 at 12 % per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10 % per annum, compounded annually. Who pays more interest and by how much?

Question

Fabina borrows ₹12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

A

Fabina pays ₹362.50 more than Radha.

B

Radha pays ₹482.50 more than Fabina.

C

Radha pays ₹362.50 more than Fabina.

D

Fabina pays ₹482.50 more than Radha.

Open in App Solution

The correct option is **C**

Fabina pays ₹362.50 more than Radha.

Here, Principal (P) = ₹12,500, Time (T) = 3 years, Rate of interest (R) = 12% p.a

We know that S.I. = P R T 100

where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).

Simple Interest for Fabina =

P × R × T 100 = 12500 × 12 × 3 100 = ₹4500. We know that C.I. = P [ 1 + R 100 ] n

where, C.I. is the compound interest, P is the principal, R is the rate of interest per annum and n is the time(number of years).

Amount(A) paid by Radha at the end of 3 years,

A = 1500 ( 1 + 10 100 ) 3 = 12500 ( 1 + 1 10 ) 3 = 12500 ( 11 10 ) 3 = 12500 × 11 10 × 11 10 × 11 10 = ₹16,637.50 ∴

C.I. for Radha = A - P = ₹16,637.50 - ₹12,500 = ₹4,137.50

Hence, Fabina pays ₹362.50 (= ₹4,500 - ₹4,137.50) more interest than Radha.

Suggest Corrections 35

SIMILAR QUESTIONS

**Q.**

Question 3

Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

**Q.**Fabina borrows

R s 12 , 500 at 12 % per annum for 3

years at simple interest and Radhs bororows the same amount for the same time period at

10 %

per annum compounded annually. Who pays more interest and by how much?

**Q.**

Maria borrowed R s .12500 at 12 % per annum for 3

years at simple interest and Radha borrows the same amount for the same time period at

10 %

per annum compounded annually .Who pays more interest by how much ?

## Fabina borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest?

Fabina borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

## Fabina borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

**Solution:**

For Simple Interest:

A = (P × R × T)/100 P = ₹ 12,500 T = 3 years

R = 12% simple interest

where , A = Amount, P = Principal, T = Time period in years and R = Rate percent

Thus, Simple Interest paid by Fabina for 3 years at the rate of 12% per annum

S.I. for 3 years = (3 × 12500 × 12)/100

= 3 × 125 × 12 = 4500

For Compound Interest:

A = P[1 + (r/100)]n P = ₹ 12,500 n = 3 years

R = 10% compounded annually

Thus, Amount paid by Radha for 3 years at the rate of 10% p.a. compounded annually

A = P[1 + (r/100)]n

A = 12500[1 + (10/100)]3

A = 12500(11/10)3

A = 12500 × (11/10) × (11/10) × (11/10)

A = 12500 × (1331/1000)

A = 12500 × 1.331 A = 16637.50

Compound Interest = A - P

= 16637.50 - 12500 = 4137.50

Since 4500 > 4137.50, Fabina paid more interest than Radha.

Additional Interest paid by Fabina = 4500 – 4137.50 = ₹ 362.50

**☛ Check:**NCERT Solutions for Class 8 Maths Chapter 8

**Video Solution:**

## Fabina borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Who pays more interest and by how much?

NCERT Solutions Class 8 Maths Chapter 8 Exercise 8.3 Question 3

**Summary:**

Fabina borrows ₹ 12,500 at 12% per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10% per annum, compounded annually. Fabina pays more interest and by ₹ 362.50.

**☛ Related Questions:**

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