Question

If the simple interest on a sum at 5% per annum for 2 years is Rs 1200, then find the compound interest on the same sum for the same period of time

Answer 1

Answer:

Clearly, Rate = 5%, Time = 3 years and S.I. = Rs.12000

Sum =Rs.(

3×5

100×12000

)=Rs.80000

Amount =Rs.

⎣

⎢

⎡

80000×(1+

100

5

)

3

⎦

⎥

⎤

=Rs. 92610

We know that C.I. = Amount - Sum

So,

C.I. =92610−80000

=Rs. 12610