Question

Compound interest on a certain sum of money at 5% per annum for two years is Rs. 246. Calculate simple interest on the same sum for 3 years at 6% per annum.

Answer 1

CI = Rs. 246, R = 5%, T = 2 years

CI = A - P

`246 = "P"[ 1 + 5/100 ]^2 - "P"`

`246 = "P"|(21/20)^2 - 1|`

`246 = "P"[441/400-1]`

`246 = "P"[(441-400)/400]` 

`246 = "P"[41/400]`

P = `[ 246 xx 400 ]/41`

P = Rs. 2400

Now, P = Rs. 2400, R = 6%, T = 3 years

SI = `[ 2400 xx 6 xx 3]/100`

= 24 × 18

= Rs. 432