Case Study: Start up A woman …
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Case Study: Start up
A woman has decided to start a business. She needs 15 Lakh for the business. She has 10 Lakh and needs to take a loan for the remaining amount for 3 years. She has approached a Bank which offered a loan of @10% compounded annually. Her friend offered the loan for @12% p.a. of simple interest. She is in a dilemma as to whom she should approach.
i) Help her to resolve this conflict. Show your working.
ii) Verify your solution using the formulas.
iii) Justify your solution by describing the patterns of simple interest and compound interest.
iv) Explain whether your solution makes sense to resolve the dilemma to take a loan which benefits.
Posted by Varsha Sharma 1 year, 2 months ago
- 2 answers
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Mahalaxmi Medi 1 year, 2 months ago
1Thank You