I borrowed 12000 rupees from jamshed at 6 percent per annum simple interest for 2 years. Had i borrwed this sum at 6 percent per annum compound interest, what extra amount would i gave to pay?

43.2 Rupees

Step-by-step explanation:

To determine how much extra will be paid, we calculate the Amount at Simple Interest and the Amount at Compound Interest and Make Comparisons.

Now, Principal=12000

Rate=6%

Time = 2 years

Amount at Simple Interest = Principal + Simple Interest

=P + (PRT) / 100

=12000 + (12000X6X2) / 100

=12000+1440

=13440 Indian Rupees

Amount at Compound Interest

A=P (1+r) ⁿ

=12000 (1+0.06) ²

=12000 (1.06) ²

=13483.2 Indian Rupees

Difference=Amount at Compound Interest - Amount at Simple Interest

=13483.2-13440

=43.2 Indian Rupees

If he had borrowed at Compound interest, he would have paid an extra 43.2 Rupees