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Comparative Analysis of Loan Interests

This math project from Primus Public School details various loans including education, home, and vehicle loans, analyzing their compound and simple interest over specified time periods. The project includes calculations for loans from five different banks: ICICI, SBI, Axis, HDFC, and Union Bank, comparing the differences between compound and simple interest. Key findings include specific amounts and interest differences for each loan type across the banks.
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0% found this document useful (0 votes)
35 views13 pages

Comparative Analysis of Loan Interests

This math project from Primus Public School details various loans including education, home, and vehicle loans, analyzing their compound and simple interest over specified time periods. The project includes calculations for loans from five different banks: ICICI, SBI, Axis, HDFC, and Union Bank, comparing the differences between compound and simple interest. Key findings include specific amounts and interest differences for each loan type across the banks.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Math Project

Primus Public School


Bengaluru
2023 – 2024

Amaresh Rajkumar
9A ICSE
Preface
This project is a report of:
1. Education loan Rs.2,00,000 in 5 years
2. Home loan of Rs.15,00,000 in 20 years
3. Vehicle loan of Rs.4,00,000 in 7 years

The interest rates for each loan have been taken from 5
different banks.
These banks are namely:
- ICICI bank
- SBI bank
- Axis Bank
- HDFC Bank
- Union Bank
Acknowledgment
(insert here)
Formulas Needed:

Principal is the amount borrowed that adds up each year by


interest.
Rate is the rate at which compound interest or simple interest
is calculated upon.
Time is the number of years the compound or simple interest
adds up its principal giving the final amount at the last year.
Amount is the amount accumulated at the end of the year or
the total number of years.

Amount (Compound Interest):


Amount = Principal*((1 + (Rate Amount/100))^time)
Therefore, Compound Interest = (Formula) - Principal

Amount(Simple Interest):
Simple Interest = (Principal*Rate Amount*Time)/100
Therefore, Amount = Principal + Interest (From formula)
Education Loan
(ICICI Bank)
Principal = Rs.200000
Rate = 9.85%
Time = 5 years

Compound Interest:

Amount = Principal*((1 + (Rate Amount/100))^time)


= 200000*((1 +(9.85/100))^5)
= Rs.319911.83

Compound Interest = Amount – Principal


= 319911.8313 – 200000
= Rs.119911.83

Compound Interest = Rs.119911.83


Amount = Rs.319911.83
Simple Interest:

Simple Interest = (Principal *Rate amount*Time)/100


= (200000*9.85*5)/100
= Rs.98500

Amount = Principal + Interest


= 200000 + 98500
= Rs.298500

Simple Interest = Rs.98500


Amount = Rs.298500

Simple Interest Vs Compound Interest

Difference in Interests = Compound Interest – Simple Interest


= Rs.119911.83 - Rs.98500
= Rs.21411.83
(SBI Bank)
Principal = Rs.200000
Rate = 11.1%
Time = 5 years

Compound Interest:
Amount = Principal*((1 + (Rate Amount/100))^time)
= 200000*((1+(11.1/100))^5)
= Rs.338532.44

Compound Interest = Amount – Principal


= 338532.44 – 200000
= Rs.138532.44

Compound Interest = Rs.138532.44


Amount = Rs.338532.44
Simple Interest:
Simple interest = (Principal*Rate amount*Time)/100
= (200000*11.1*5)/100
= Rs.111000

Amount = Principal + Interest


= 200000 + 111000
= Rs.311000

Simple Interest = Rs.111000


Amount = 311000

Simple Interest Vs Compound Interest

Difference in Interests = Compound Interest – Simple Interest


= 138532.44 – 111000
= Rs.27532.44
(Axis Bank)
Principal = Rs.200000
Rate = 8.8%
Time = 5 years

Compound Interest:
Amount = Principal*((1 + (Rate Amount/100))^time)
= 200000*((1+(8.8/100))^5)
= Rs.304911.97

Compound Interest = Amount – Principal


= 304911.97 – 200000
= Rs.104911.97

Compound Interest = Rs.104911.97


Amount = Rs.304911.97
Simple Interest:
Simple Interest = (Principal*Rate amount*Time)/100
= (200000*8.8*5)/100
= Rs.88000

Amount = Principal + Interest


= 200000 + 88000
= Rs.288000

Simple Interest = Rs.88000


Amount = Rs.288000

Simple Interest VS Compound Interest


Difference in interests = Compound Interest – Simple interest
= 104911.97 – 88000
= 16911.97
(HDFC Bank)
Principal = Rs.200000
Rate = 9.6%
Time = 5 years

Compound Interest

Amount = Principal*((1 + (Rate Amount/100))^time)


= 200000*((1+(9.6/100))^5)
= Rs.316288.04

Compound Interest = Amount – Principal


= 316288.04 – 200000
= Rs.116288.04

Compound Interest = Rs.116288.04


Amount = Rs.316288.04
Simple Interest

Simple Interest = (Principal*Rate amount*Time)/100


= (200000*9.6*5)/100
= Rs.96000

Amount = Principal + Interest


= 200000 + 96000
= Rs.296000

Simple Interest = Rs.96000


Amount = Rs.296000

Simple Interest VS Compound Interest

Difference in interests = Compound Interest – simple interest


= 116288.04 – 96000
= Rs.20288.04
(Union Bank)

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