Question

If the simple interest on a sum of money at 5$\%$ per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate..

• A. 1261
• B. 1254
• C. 1441
• D. 1002

Answer 1

The correct option is A

1261

Clearly, Rate = 5% p.a. ; Time = 3 years ; S.I. = Rs. 1200.

So, Principal = Rs. $\frac{100\times 1200}{3\times 5}=Rs.8000$.

Amount = Rs. $[8000\times (1+\frac{5}{100}{)}^3]=Rs.(8000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20})=Rs.9261$.

$\therefore$ C.I.= $Rs.(9261-8000)=Rs.1261$.