Simple interest on a certain sum of money for 3 years at 5% per annum is ₹ 5250. What will be the compound interest on that sum at the same rate for the same period?
P = $$\frac{S.I\times100\ }{R\times T\ }$$
P = $$\frac{5250\times100\ }{5\times3}=35000$$
Now for compound interest, P = 35000, R = 5%, T = 3
A = $$P\left(1+\frac{r}{100}\right)^n$$
A = $$35000\left(1+\frac{5}{100}\right)^3$$
A = $$35000\times\ \frac{105}{100}\times\ \frac{105}{100}\times\ \frac{105}{100}=40516.875$$
C.I = 40516.875 - 35000 = 5516.875 = 5516.88.
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