The simple interest accrued on an amount of Rs. 25,000 at the end of three years is Rs. 7,500. What would be the compound interest accrued on the same amount at the same rate in the same period?
Question
The simple interest accrued on an amount of Rs. 25,000 at the end of three years is Rs. 7,500. What would be the compound interest accrued on the same amount at the same rate in the same period?
we know SI = (PTR/100)
=> Rate = (100*SI)/(PT)
=> Rate = (100*7500)/(25000*3) = 10% per annum.
Then, Compound interest = 25000[(1+{10/100}^3 - 1)]
If you simply this will get Rs. 8,275 as compound interest.
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