Question

The simple interest accrued on an amount of Rs, 20,000 at the end of three years is Rs, 7,200. What would be the compound interest accrued on the same amount at the same rate in the same period?

• A. Rs. 8098.56
• B. Rs. 8246.16
• C. Rs. 8112.86
• D. Rs. 8342.36
• E. None of these

Answer 1

The correct option is A Rs. 8098.56

$Rate=\frac{S.I\times 100}{Principal\times Time}=\frac{7200\times 100}{20000\times 3}=12\%perannum\therefore C.I.=P[{(1+\frac{R}{100})}^T-1]=20000[{(1+\frac{12}{100})}^3-1]=20000\left[\right(1.12{)}^3-1]=20000\times (1.404928-1)=Rs.8098.56$