Question

The simple interest on a sum of money for $3$ years at $12\%$ per annum is $rs.4500$. what will be the compound interest on that sum at the same rate and for the same period?

• A. $Rs.5061.60$
• B. $Rs.5000$
• C. $Rs.4050.50$
• D. $Rs.5055$

Answer 1

The correct option is A $Rs.5061.60$

$\begin{array}{c}S.I=\frac{prt}{100}=4500\\ \frac{p\times 12\times 3}{100}=4500\\ p=12500\\ \\ Compoundinterest\\ C.I=P\left[{\left(1+\frac{r}{100}\right)}^2-1\right]\\ =12500\left[{\left(1+\frac{12}{100}\right)}^3-1\right]\\ =12500\left[{\left(1.12\right)}^3-1\right]\\ =5061.6\\ Hence,optionAisthecorrectanswer.\end{array}$