What will be the compound interest at the rate of 5% per annum for 3 y

1.	What will be the compound interest at the rate of 5% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs. 1200 as simple interest.
Answer» Given details are, Rate = 5 % per annum Simple Interest (SI) = Rs 1200 Time (t) = 3 years By using the formula, SI = (PTR)/100 P = (SI×100) / (T×R) = (1200×100) / (3×5) = 120000/15 = Rs 8000 Now, P = Rs 8000 R = 5% T = 3years By using the formula, A = P (1 + R/100)ⁿ = 8000 (1 + 5/100)³ = 8000 (105/100)³ = Rs 9261 ∴ CI = Rs 9261 – 8000 = Rs 1261

What will be the compound interest at the rate of 5% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs. 1200 as simple interest.

Answer»

Given details are,

Rate = 5 % per annum

Simple Interest (SI) = Rs 1200

Time (t) = 3 years

By using the formula,

SI = (PTR)/100

P = (SI×100) / (T×R)

= (1200×100) / (3×5)

= 120000/15

= Rs 8000

Now,

P = Rs 8000

R = 5%

T = 3years

By using the formula,

A = P (1 + R/100)ⁿ

= 8000 (1 + 5/100)³

= 8000 (105/100)³

= Rs 9261

∴ CI = Rs 9261 – 8000 = Rs 1261