The compound interest on a certain sum of money at 5% per annum for two years is ₹246. Calculate the simple interest on the same sum for three years at 6% per annum.
₹432
We know that, C.I=P[(1+r100)n−1]where P is the principal, r is the rateof interest and t is the time period.
Hence, 246=P[(1+5100)2−1]
246=P[(2120)×(2120)−1]246=P×(41400)
⇒P=246×40041=₹ 2400
Now, P= ₹ 2400,r=6% per annum and t = 3 years
S.I=P×r×t100=2400×6×3100=₹432