Question

a certain sum of money gets a simple interest of rupees 3300 in 3 years at the rate of 5% p.a interest. what would be the compound interest on the same sum at the same rate in 2 years?

Answer 1

Interest for 1 year = 5%

Interest for 2 years = 5%x 2 = 10%

Interest for 3 years = 5%×3= 15%

Principal Amount = Interest Amount / Interest Rate

= 3300 / 10%

= 33,000/-

Compound Interest for 2 years @ 5% = 10%

Interest Amount = 33000 x 10%

= Rs. 3300