Answer:
Step-by-step explanation
For bharathi
Principal,P =Rs 12500
Simple interest Rate,R = 12%
Time period,n = 3 years.
Simple Interest, SI at 12% for 3 years =
(12500×12×3)/100
= Rs 4500
For Madhuri
Principal,P =Rs 12500
Compound interest Rate,R = 10% p.a.
Time period,n = 3 years.
Amount when interest is compounded annually
C.i=A-P
C.i=(1+R/100)^3-p
=12500((1+10/100)^3-12500
=12500(11/10)^3-12500
=[(125×11×11×11)/10×10×10]-12500
=16637.50-12500
=4137.50
Bharathi pays more interest and Rs (4500 - 4137.50) = Rs 362.50 more.
