Ambadas took a loan of ₹ 96000 at com­pound interest from a bank to drill well in his field. If the rate is 6.25 p.c.p.a., what amount will he have to pay to the bank if he returns the loan after 2 years? How much money would he have saved had he been able to borrow the same amount at simple interest for the same period at the same rate?

Explanation

₹ 1,08,375, ₹ 375