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If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?
- a)Rs. 1261
- b)Rs. 1225
- c)Rs. 1241
- d)Rs. 1251
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If the simple interest on a sum of money at 5% per annum for 3 years i...
Let sum = Rs. P
then
∴ C.I. = 9261 - 8000 = 1261
then
∴ C.I. = 9261 - 8000 = 1261
Most Upvoted Answer
If the simple interest on a sum of money at 5% per annum for 3 years i...
Let sum = Rs. P
then
∴ C.I. = 9261 - 8000 = 1261
then
∴ C.I. = 9261 - 8000 = 1261
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Community Answer
If the simple interest on a sum of money at 5% per annum for 3 years i...
Understanding Simple Interest
Simple interest (SI) is calculated using the formula:
SI = (Principal × Rate × Time) / 100
Here, we know:
- SI = Rs. 1200
- Rate = 5% per annum
- Time = 3 years
Now, we can rearrange the formula to find the Principal (P):
P = (SI × 100) / (Rate × Time)
P = (1200 × 100) / (5 × 3)
P = 120000 / 15
P = Rs. 8000
Calculating Compound Interest
Now, let's calculate the compound interest (CI) using the formula:
CI = P(1 + r/n)^(nt) - P
Where:
- P = Principal = Rs. 8000
- r = Rate = 5% = 0.05
- n = Number of times interest applied per time period = 1 (annually)
- t = Time = 3 years
Using the formula:
CI = 8000(1 + 0.05/1)^(1×3) - 8000
CI = 8000(1 + 0.05)^3 - 8000
CI = 8000(1.05)^3 - 8000
CI = 8000 × 1.157625 - 8000
CI = Rs. 9261 - 8000
CI = Rs. 1261
Conclusion
Therefore, the compound interest on the same sum for the same period at the same rate is:
- Rs. 1261
This confirms that the correct answer is option 'A'.
Simple interest (SI) is calculated using the formula:
SI = (Principal × Rate × Time) / 100
Here, we know:
- SI = Rs. 1200
- Rate = 5% per annum
- Time = 3 years
Now, we can rearrange the formula to find the Principal (P):
P = (SI × 100) / (Rate × Time)
P = (1200 × 100) / (5 × 3)
P = 120000 / 15
P = Rs. 8000
Calculating Compound Interest
Now, let's calculate the compound interest (CI) using the formula:
CI = P(1 + r/n)^(nt) - P
Where:
- P = Principal = Rs. 8000
- r = Rate = 5% = 0.05
- n = Number of times interest applied per time period = 1 (annually)
- t = Time = 3 years
Using the formula:
CI = 8000(1 + 0.05/1)^(1×3) - 8000
CI = 8000(1 + 0.05)^3 - 8000
CI = 8000(1.05)^3 - 8000
CI = 8000 × 1.157625 - 8000
CI = Rs. 9261 - 8000
CI = Rs. 1261
Conclusion
Therefore, the compound interest on the same sum for the same period at the same rate is:
- Rs. 1261
This confirms that the correct answer is option 'A'.
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If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer? for Class 8 2026 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 8 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer?.
If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer? for Class 8 2026 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 8 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200. Then what is the compound interest on the same sum for the same period at the same rate?a)Rs. 1261b)Rs. 1225c)Rs. 1241d)Rs. 1251Correct answer is option 'A'. Can you explain this answer?.
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