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Question 18
The simple interest accrued on an amount of Rs 84,000 at the end of three years is Rs 30,240 What would be the compound interest accrued on the same amount at the same rate in the same period ?
Solution
We know that,
Simple Interest = (Principal * Number of years * Rate of Interest)
Here, rate of interest = 30240/(84000*3)
Therefore, rate of interest = .12 = 12%
Now, amount after compunding = Principal (1+r)^n = 84000*(1.12)^3
= 118013.952
Interest = 34013.952
Hence, option E is correct.
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