Kavita wants to borrow an amount of Rs.50000 for 3 years.Bank A charges an compund interest at 8% per annum ,while bank B charges simple interest at 5% semi anually .which offer is more profitable for Kavita.(show the whole solution)

Question

Kavita wants to borrow an amount of  Rs.50000 for 3 years.Bank A charges an compund interest at 8% per annum ,while bank B charges simple interest at 5% semi anually .which offer is more profitable for Kavita.(show the whole solution)

vishweshshrimali5 · Answer

BANK A

$$CI = P * (1 + \frac{r}{100})^n$$


$$CI = 50000* (1 + \frac{8}{100})^3$$

now calculate it

BANK B

$$SI = \frac{50000*10*3}{100}$$

solve both and compare which one is larger
that will be ur answer

anonymous · Answer

but the mode of interest is different

vishweshshrimali5 · Answer

dear, the greater the interest the greater the amount

anonymous · Answer

i mean to say that Bank A charges it anually and B semi anually

anonymous · Answer

if bank B charges more will it be more/less profitable

vishweshshrimali5 · Answer

well it will be less profitable if the quantity is more

anonymous · Answer

hmmm then ur anwer is wrong