Ten > Compound Interest
Asked by Basanta ยท 2 years ago

Pushpanjali is planning to borrow a loan of Rs 5,00,000 from a bank for 1 year and visited 3 banks and found the interest rates as follows: 

Bank A: Rate of interest 10.5$\rm \%$. It is compounded in each year. 

Bank B: Rate of interest 10$\rm \%$. It is compounded in each 6 months. 

Bank C: Rate of interest 9.5$\rm \%$. It is compounded in each 3 months.

  1. How much interest does Bank A charge?
  2. How much interest does Bank B charge?
  3. How much interest does Bank C charge?
  4. Which bank is preferable for loan borrowing?

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