What are the total interest amounts that A and B will need to pay back on their loans?

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A borrows Rs. 800 at a simple interest rate of 12% per annum, while B borrows Rs. 910 at a simple interest rate of 10% per annum. To find the total interest paid by each borrower, we use the formula for simple interest:

Simple Interest (SI) = (Principal × Rate × Time) / 100

Assuming they both borrow the money for a duration of 1 year:

Calculating A’s Interest:

For A:

  • Principal (P): Rs. 800
  • Rate (R): 12% per annum
  • Time (T): 1 year

Using the formula:

SIA = (800 × 12 × 1) / 100

SIA = 96

A will pay Rs. 96 as interest after one year.

Calculating B’s Interest:

For B:

  • Principal (P): Rs. 910
  • Rate (R): 10% per annum
  • Time (T): 1 year

Using the formula:

SIB = (910 × 10 × 1) / 100

SIB = 91

B will pay Rs. 91 as interest after one year.

Total Interest:

Now, we summarize the findings:

  • A pays an interest of Rs. 96.
  • B pays an interest of Rs. 91.

Therefore, A will need to pay back a total of Rs. 896 (Principal + Interest), and B will repay Rs. 1001 (Principal + Interest).

This simple interest calculation helps A and B understand their total liability, enabling better financial planning for repayment.

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