Question

The si accrued on an amount of rs84000 at the end of 3yrs is rs30240.what would be the ci accrued on the same amount at the same rate in same period?

Answer 1

The formula for simple interest is P × R × T / 100

Where,

SI = simple interest

P = Principal Amount

R = Rate of interest

T = time duration in years

So, rate of interest = 30240 × 100 / (84000 × 3) = 12

Formula for amount accrued as compound interest, Amount = P {1 + R/100}n

Where,

P = Principal Amount

R = Rate of interest

n = Time duration in years

So, amount accrued on 84000, Amount = 84000 (1.12)3 = 118013.952

Compound interest earned = 118013.952 – 84000 = Rs. 34013.952