Question

the simple interest on a sum of money for 3 years at 5% per annum is Rs.1000. what will be the compound interest on that sum at the same rate and same period?
please help me I want full explaination you don't use compound interest formula you want to solve with simple interest formula​

Answer 1

Step-by-step explanation:

let sum of money or principal amount P

time 3year

rate of interest 5%

interest= 1000-p

we know

interest = principal × time × rate of interest/100

1000-p = p × 3×5/100

0r, 1000-p = p × 3×1/20

or, 20000-20p= 3p

or p = 20000/23

p= 869.56 (ans)

for compound interest

amount = p(1+r/100)^t

or amount = 20000/23 ×( 21/20)³

or amount = 20000/23 × 21/20 ×21/20 ×21/20

= 5×21×21×21/2

= 23152.5

interest = 23152.5-10000

= 13152.5