Question

The S.I. accrued on an amount of Rs. $25,000$ at the end of three years is Rs. $7,500$. What would be the C.I. accrued on the same amount at the same rate in the same period?

• A. $7,750$
• B. $8,275$
• C. $8,500$
• D. $8,250$
• E. None of these

Answer 1

Answer: (B)

$8,275$

Apply the formula for simple interest

$7500=\frac{25000\times R\times 3}{100}$

$⟹R=\frac{7500}{250\times 3}=10\%$

Interest for the $1$st year$=\frac{25000\times 10\times 1}{100}$

$=2500$

Amount After the $1$st year$=25000+$$2500$

$=27500$

Interest for the $2$nd year$=\frac{27500\times 10\times 1}{100}$

$=2750$

Amount After the $2$nd year$=27500+$$2750$

$=30250$

Interest for the $3$rd year$=\frac{30250\times 10\times 1}{100}$

$=3025$

Amount After the $3$rd year$=30250+$$3025$

$=33275$

$\therefore$Compound Interest(CI)$=33275-$$25000$

$=Rs.8275$