If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.

Question

A. 1261

B. 1234

C. 1256

D. 1287

Share this question with your friends

Correct Answer :

A. 1261

Clearly, Rate = 5% p.a., Time = 3 years, S.I.= Rs. 1200.

So principal=RS [100*1200]/3*5=RS 8000

Amount = Rs. 8000 x [1 +5/100]^3 - = Rs. 9261.

C.I. = Rs. (9261 - 8000) = Rs. 1261.

Comment