Question

The simple interest on a certain sum at 6% per annum for three years is ₹1,200. Then, the compound interest on the same sum at the same rate for two years will be:

• A. ₹724
• B. ₹816
• C. ₹824
• D. ₹1,216

Answer 1

Answer:

C. ₹824

Solution:

Given:

The simple interest on a certain sum at 6% per annum for three years is ₹1,200.

Concept used:

S.I = (P × T × R)/100

C.I = P(1 + R/100)^T - P

Here,

P = Principal

T = time

R = rate

Calculation:

Let the principal be P

According to the question,

1200 = (P × 3 × 6)/100

⇒ P = 20000/3

Now,

C.I = 20000/3(1 + 6/100)² - 20000/3

⇒ 20000/3(53/50)2 - 20000/3

⇒ 20000/3(2809/2500) - 20000/3

⇒ 22472/3 - 20000/3

⇒ 2472/3

⇒ 824

So, compound interest = ₹824.

∴ The required answer is ₹824.