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

ok let me solve this

vishweshshrimali5 · Answer

see

BANK A

CI = 50000 (1 + 8/100)^ 3 = 62985.6

BANK B

SI = 50000 * 10 * 3/ 100 = 15000

Clearly the BANK A will charge more. Thus, she should go for bank B

vishweshshrimali5 · Answer

hope u got it now

anonymous · Answer

sorry ur sum is wrong because
A = 50000 (1 + 8/100)^ 3 = 62985.6
AND CI = A - P = 12985.6
Therefore it is wrong