Question
Rohit invested a certain amount at the rate of 6
p.c.p.a. and obtained a simple interest of Rs 8,730 at the end of 3 years. What amount of compound interest would he obtain on the same amount at the same rate of interest at the end of 2 years?Solution
Let the principal be Rs. x S.I = (P × R × T)/100 8730 = (x × 6 × 3)/100 x = 48500 Now, C.I. = P(1+ R/100)t – P C.I. = 48500 (1 + 6/100)2 – 48500 C.I. = Rs. 5994.60
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