Question

The amount after 3 years is 46000 if simple interest is given at the rate of 5% per annum.
Then what will be the amount if compound interest is given on the same amount for the same
period and same rate of interest?
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Answer 1

Answer:

a = p[1 +r/100] the whole power n

46000[1 + 5/100] the whole power of 3

46000 105/100 105/100 105/100

46 *105/100*21/2*105

53 250.75

Answer 2

The amount if compound interest is used would be 46305

1) For the case of Simple interest.

Amount = SI + P = 46000

Time = 3 years

Rate = 5%

SI = PRT/100

A = SI + P = P + PRT/100 = P(1+RT/100)

46000 = P(1 +15/100)

46000 = P*1.15

Hence, the Principal amount is Rs. 40,000

2) In the case of Compound Interest

P = 40000, R = 5%, T = 3 years

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

A = 40000(1+5/100)^3

A = 40000*1.157

A = 46305