Question

Find the compound interest at the rate of 5â for three years on that principal which in three years at the rate of 5â per annum gives rs 1200 at simple interest

Answer 1

Step-by-step explanation:

For finding compounds interest, we first have to find principal.

Given, S.I = ₹1200

T = 3 years

R = 5%

We know,

S.I = P×R×T / 100

1200 = P × 5 × 3/100

15P/100 = 1200

3P/20 = 1200

P = 1200 × 20/3

P = 400 × 20

P = ₹8000

Now, for compound interest,

P = ₹8000

R = 5%

T = 3 years

A = P(1 + R/100)^T

A = 8000 × (21/20)³

A = 20³ × 21³/20²

A = 21³

A = ₹9261

C.I = A - P

= 9261 - 8000

= ₹1261

Hope it helps!

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