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The simple interest of a sum of money at the rate of 4% per annum in 3 years is Rs. 303.60. Then find the compound interest of the same principal at the same rate of compound interest in the same period of time. |
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Answer» Let the principal be Rs. `x`. `:.` The simple interes of `Rs.x` at the of 4% simple interest per anuum in 3 years. `=Rs.(x xx4xx3)/100=Rs. (3x)/25` As per question `(3x)/25=303.60impliesx=(303.60xx25)/3` `impliesx=2530` Henc ethe principal `=Rs. 2530` Now the compound interest of Rs.x in 3 years at the rate of 4% compound interest per annum. `=Rs.2530xx(1+4/100)^(3)-Rs.2530` `impliesRs. 2530xx{(26/25)^(3)-1]` Rs.`=Rs. 2530xx(17576/15625-1)=Rs.2530xx(17576-15625)/15625` `=Rs.2530xx1951/15625` `=Rs.315.905=Rs.315.91` (approx) Hence the required compound interet `=Rs. 315.91` (approx) |
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