ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the simple interest on a sum of money at 5% per annum for 3 years is $ 1200, then the compound interest on the same sum for the same period at the same rate will be
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$ 1225
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$ 1236
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$ 1248
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$ 1261
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Explanation:
Detailed explanation-1: -So principal=RS [100*1200]/3*5=RS 8000 Amount = Rs. 8000 x [1 +5/100]3 = Rs. 9261. C.I.
Detailed explanation-2: -Simple interest on a certain sum of money for 3 years at 5% per annum is Rs 600.
Detailed explanation-3: -The principal is to be compounded annually. Thus, the required compound interest is Rs 12, 610.
Detailed explanation-4: -The Simple interest on a sum of Rs 15000 for 3 years is Rs 3600.
Detailed explanation-5: -The difference between simple and compound interest on a sum for 3 years at 5% p.a. is Rs. 76.30 .
There is 1 question to complete.