Find the compound interest at the rate of 5% for three years on that principal which in three years at the rate of 5% per annum gives Rs. 12000 as simple interest.
Given,
Simple interest = Rs.12000
Rate = 5% per annum
Time = 3 years
So,
=
= P =
We get ,
Principal = Rs.80000
Rate = 5% per annum
Time = 3 years
Compound interest =
= 80000=