Question

7. Find 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 1,200 as the simple interest.​

Answer 1

Answer:  

Rs 1261

Step-by-step explanation:

Find the interest per year:

3 years interest = Rs 1200

1 year interest 1200 ÷ 3 = Rs 400

Find the principal amount:

5% = 400

1% = 400 ÷ 5 = Rs 80

100% = 80 x 100 = Rs 8000

The principal amount is Rs 8000

Find the compound interest:

Amount = 8000(1 + 0.05)³

Amount = Rs 9261

Interest = 9261 - 8000 = Rs 1261

The compound interest is Rs 1261

Answer:  Rs 1261