Question

You ask your best friend to lend you ₹300, to buy your favourite toy. She says she can lend you the money only if you give her an extra ₹3, for every three months that pass before you return it.

Answer 1

your friend asks for RS 3 every three months, so in 9 months, you have to pay 9 RS extra so the amount you must play after 9 months is 309. the annual rate of interest will be basically the money you will have to give her after 12 month period which will be 12 rs. the annual rate of interest is 12pcpa