Sheela borrows Rs 15,000 from her friend at 12% per annum for 3 years at simple interest - Maths - Comparing Quantities

Question

Sheela borrows Rs 15,000 from her friend at
12% per annum for 3 years at simple interest Renu
borrows the same amount from a bank for 3 years at 21/2 % p
a compounded annually Who pays more interest and by how
much?

MD Kabeer · Accepted Answer

Sheela borrows Rs. 15,000 from her friend at 12% per annum for 3 years at simple interest . Renu borrows the same amount from a bank for 3 years at 21/2 % p.a. compounded annually . Who pays more interest and by how much?