- Trending Categories
- Data Structure
- Networking
- RDBMS
- Operating System
- Java
- MS Excel
- iOS
- HTML
- CSS
- Android
- Python
- C Programming
- C++
- C#
- MongoDB
- MySQL
- Javascript
- PHP
- Physics
- Chemistry
- Biology
- Mathematics
- English
- Economics
- Psychology
- Social Studies
- Fashion Studies
- Legal Studies

- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who

# Find the compound interest at the rate of 5 % per annum for 3 years on that principal which in 3 years at the rate of 5 % per annum gives Rs 1200 as simple interest.

**Given :**

For compound interest:

Rate of interest (R)$=5$%.

Time (N)$=3$ years.

For simple interest:

Rate of interest (R)$=5$%.

Time (N)$=3$ years.

Simple interest (SI)$=1200$.

**To do :**

We have to find the principal(P) and compound interest(CI).

**Solution :**

We know that,

$SI = \frac{PNR}{100}$

$1200 = \frac{P \times 3 \times 5}{100}$

$P = \frac{1200 \times 100}{3 \times 5}$

$P = 400 \times 20$

$P = 8000$

**The principal is ₹8000.**

**
**

$CI = P(1+\frac{R}{100})^N - P$

$CI =8000 (1+ \frac{5}{100})^3 - 8000$

$CI = 8000 (\frac{100+5}{100})^3 -8000$

$CI = 8000 (\frac{105}{100})^3 -8000$

$CI = 8000 (\frac{21}{20})^3 - 8000$

$CI = 8000 \times \frac{9261}{8000} - 8000$

$CI = 9261 - 8000 = 1261$

**Therefore, the Compound interest is ₹1261.**

- Related Articles
- Find the interest on a sum of Rs. 8250 for 3 years at a rate of 8% per annum.
- In how many years does the sum of â‚¹1200 become â‚¹1800 at the rate of simple interest of 5% per annum?
- Find Simple interest on amount Rs 3680 for 2 years at 6 percent per annum.
- The difference between the simple interest and the compound interest on a sum of money for 3 years at 12% per annum is â‚¹216. Find the sum.
- The difference between the simple interest and the compound interest on a sum of money for 3 years at 10% per annum is â‚¹ 558. Find the sum.
- Calculate the amount and compound interest on Rs. 10,800 for 3 years at \( 12 \frac{1}{2} \% \) per annum compounded annually.
- How much compound interest is earned by investing $Rs.\ 20000$ for $6$ years at $5$ % per annum compounded annually?
- At what rate percent per annum, simple interest will â‚¹66000 amount to â‚¹72720 in 2 years?
- At what rate percent per annum will Rs 4500 amount to Rs 5715 in 3 years ?
- Calculate the compound interest on Rs. 80,000 for 3 years if the rate of interest for the 3 successive years are 4%, 5% and 10% respectively.
- In how many full years will the sum of money become more than double at the compound interest rate of 20% per annum?
- Find the compound interest on Rs. 6,000 for 1 year at the rate of 4% per annum if the interest is a) Compounded half-yearly b) compounded quarterly
- Let P is the principal and interest compounded half yearly at the rate of \( 20 \% \) per annum then amount after two years will be
- A sum of money invested at 8% per annum for simple interest amounts to Rs.12,122 in 2 years. What will it amount to in 2 year 8 months at 9% rate of interest?
- Anita borrowed Rs. $400$ from her friend at the rate of $12$ % per annum for $2\frac{1}{2}$ years. Find the interest and amount paid by her.

Advertisements