Question
The simple interest on a sum of money for 3 years is
1,200 at a rate of 10% per annum. What is the compound interest on the same sum for the same time and rate, compounded annually?Solution
ATQ, Let the principal be P Simple Interest (SI) = PĂ—10Ă—(3/100) = 1200 P = 4000 
= 6655 – 5000 = 1655
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