Anamika paid ₹4,965 as compound interest on a loan ₹15,000 after 3 years when compounded annually. Suman took a loan of ₹10,000 at the same rate on simple interest. How much interest did suman pay after 3 years?
Answer & explanation
Correct answer: option 3
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
Compound Interest = Amount - Principal
15000 + 4965 = 15000 [ 1 + \(\frac{R}{100}\)]³
19965 = 15000 [ 1 + \(\frac{R}{100}\)]³
\(\frac{1331}{1000}\) = [ 1 + \(\frac{R}{100}\)]³
(\(\frac{11}{10}\))³ = [ 1 + \(\frac{R}{100}\)]³
\(\frac{11}{10}\) = 1 + \(\frac{R}{100}\)
\(\frac{R}{100}\) = \(\frac{1}{10}\)
R = 10% ( Interest for suman )
ATQ,
Simple interest = \(\frac{P × R × T}{100}\)
= \(\frac{10000 × 10 × 3}{100}\)
= 3000
So, Interest paid by suman = Rs. 3000