Question

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

Answer 1

I=PRT/100
so P=100×I/RT
P=100×1200/(5×3)
P=8000RS

INTEREST RATE FOR COMPOUND INTERRST FOR 2 YEARS BECOME 10.25
SO
C.I= 8000×10.25/100
C.I = 820