Question

A man invests Rs. $46875$ at $4\%$ per annum at compound interest for $3$ year. Calculate the interest for the first year.

Answer 1

Interest in $1^{st}$ year would be the simple interest given by $=\frac{Principal\times rate\times time}{100}$

$=\frac{46875\times 4\times 1}{100}$

$=$ $Rs.1875$.