Question

If simple interest on the sum of money at 5% per annum for 3year is rs1200 then the compound interest on the same sum for the same period at the same rate will be

Answer 1

Explanation:

P = $1,043.48

Equation:

P = A / (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year.

Solving our equation:

P = 1200 / ( 1 + (0.05 × 3)) = 1043.4782608696

P = $1,043.48

The principal investment required to get a total amount, principal plus interest, of $1,200.00 from simple interest at a rate of 5% per year for 3 years is $1,043.48.