I borrowed Rs 12,000 from Jamshed at 6% per annum simple interest for 2 years. Had I borrowed this sum at 6% per annum compound interest, what extra amount would I have to pay?
Here, Principal (P) = Rs.12,000, Time, T = 2 years, Rate of interest (R) = 6% p.a.
Simple Interest = PRT/100
= Rs. 1,440
Had he borrowed this sum at 6% p.a., then
Compound Interest = 
= Rs. 13,483.20 – Rs. 12,000
= Rs. 1,483.20
Difference in both interests = Rs. 1,483.20 – Rs. 1,440.00
= Rs. 43.20
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