Question

If the simple interest on a sum of money at 12% per annum for 3 years is Rs 22500, find the compound
interest on the same sum for the same period at the same rate.



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Answer 1

Step-by-step explanation:

check the working in the attachment

Answer 2

Concept introduction:

Simple interest is computed on a loan's principle amount or the first deposit into a checking account. Simple interest doesn't accumulate, thus an account holder only earns interest on the principle and a borrower never has to pay interest on previously accumulated interest.

Given:

Here it is given that  simple interest on a sum of money at $12$% per annum for $3$ years is Rs $22500,$

To find:

We have to find  the compound interest on the same sum for the same period at the same rate.

Solution:

According to the question,

First of all we have to calculate the principle and the principle is

$P=$

$(22500*100)/(3*12)\\=65500$

Now, the compound interest will be

$65500[(1+12/100)^{3}-1]\\=16663.20$

Final answer:

Hence, the final answer of the question is => Rs. $16663.20$.

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