Question

Compound interest on a certain sum of money at 5% per annum for two years is Rs. 246.Calculate simple interest on the same sum for 3 years at 6% per annum.

Answer 1

CI = Rs. 246, R = 5%, T = 2 years

CI = A - P

$246=P{(1+\frac{5}{100})}^2-P$

$246=P|{\left(\frac{21}{20}\right)}^2-1|$

$246=P\frac{61}{400}$

$P=\frac{246\times 400}{41}$

= Rs. 2400

Now, P = Rs. 2400, R = 6%, T = 3 years

SI = $\frac{2400\times 6\times 3}{100}$

= Rs. 432