What will be 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,

Question

Philoid · Accepted Answer

Given,

S.I = Rs.1200

Rate of simple interest = 5%

time = 3 years

Let principal = Rs. P

so, by formula

=

Hence,

Principal = Rs.8000

now,

Rate of compound interest = 5%

Time = 3 years

so,

compound interest =