Question

If the simple interest on a certain sum of money for 3 years at 5% is rs 150. find the corresponding compound interest

Answer 1

Given Simple Interest= SI = 150

Rate of Interest Per annum= R= i= 5%

Time = T= n = 3years

we know that
Simple Interest = PTR/100

150 = P*3*5/100

150×100/15= P

1000 = P

We know that

Compound Interest
=P(1+i)^n - P

=1000(1+5%)^3 - 1000

=1000(1.157625) -1000
=1157. 625 - 1000
=157.625 is the compound Interest.