1.

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.

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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