Question

the simple interest on a certain sum of money for 3 years at 5%per annum is rupees 1200. find the amount due and the compound interest on this sum of money at the same rate and after 2 years interest in reckoned annually​

Answer 1

Answer:

The amount is Rs. 19,200 and the compound interest is Rs. 18,000.

Step-by-step explanation:

1. Time = 3yrs , Rate of interest = 5% p.a. , Principle = Rs. 1,200 and Amount = ?

Amount = Principle ( 1 + Rate × Time )

= 1,200 ( 1 + 5 × 3 )

= 1,200 × 16

= Rs. 19,200.

Now,

Principle = Rs.1,200 and Amount = Rs. 19,200

Compound Interest = Amount - Principal

=Rs. 19,200 - Rs. 1,200

=Rs. 18,000.