Question 10

The simple interest accrued on an amount of Rs. 19,800 at the end of three years is Rs. 7,128. What would be the compound interest accrued on the same amount at the same rate in the same period ?

Solution

Let rate of interest be $$r$$ %

=> Simple interest = $$\frac{19800 \times r \times 3}{100} = 7128$$

=> $$r = 12$$%

Now, C.I. = $$19800 [(1 + \frac{12}{100})^3 - 1]$$

= $$19800 (1.12^3 - 1)$$

= $$19800 * 0.405 = 8019$$

= Rs. 8017.5744

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