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.

A. 1261

B. 1234

C. 1256

D. 1287

Correct Answer :

A. 1261

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