Find the compound interest at the rate of $8 %$ per annum for 3 years on that principal which in 3 years at the rate of $5 %$ per annum gives Rs. 1200 as simple interest.

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Solution

In first case,
S.I = Rs. 1200
Rate (R) $= 5 %$ p.a
Period (T) = 3 years
$∴$ Principal $= \frac{S . I \times 100}{R \times T} = \frac{1200 \times 100}{5 \times 3}$
$= R s . 8000$
In second case,
Principal (P) = Rs. 8,000
Rate (R) $= 5 %$ p.a
Period (n) = 3 years
$∴$ Amount $= P {(1 + \frac{R}{100})}^{n}$
$= R s . 8, 000 {(1 + \frac{5}{100})}^{3}$
$= R s . 8000 {(\frac{21}{20})}^{3}$
$= R s . 8000 \times \frac{21}{20} \times \frac{21}{20} \times \frac{21}{20}$
$= R s . 9261$
Rs. 9261 - Rs. 8,000 = Rs. 1261

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Find the simple interest, when:
(i) Principal $= R s .2000$ , Rate of Interest $= 5 %$ per annum and Time $= 5$ years.
(ii) Principal $= R s .500$ , Rate of Interest $= 12.5 %$ per annum and Time $= 4$ years.
(iii) Principal $= R s .4500$ , Rate of Interest $= 4 %$ per annum and Time $= 6$ months.
(iv) Principal $= R s .12000$ , Rate of Interest $= 18 %$ per annum and Time $= 4$ months.
(v) Principal $= R s .1000$ , Rate of Interest $= 10 %$ per annum and Time $= 73$ days.

Q. Find the difference between the compound interest (compounded annually) and the simple interest on

R s 2000

for

3

years at the rate of

8 %

per annum.

Q. Find the compound interest on Rs.

2, 000

at the rate of interest

5

% per annum for 3 years.

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Find the compound interest at the rate of 8% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs. 1200 as simple interest.

Find the compound interest at the rate of $8 %$ per annum for 3 years on that principal which in 3 years at the rate of $5 %$ per annum gives Rs. 1200 as simple interest.