Multiple choice

What will be the compound interest on the amount of Rs. 1,75,500 at a certain rate, if the simple interest on the same amount for 3 years is Rs. 31,590?

  1. Rs. 33,200

  2. Rs. 33,220

  3. Rs. 33,523

  4. Rs. 34,424

  5. Rs. 34,625
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest for 3 years is 31,590, so annual SI is 10,530. The rate is (10,530 / 1,75,500) * 100 = 6%. Compound interest for 3 years at 6% is 1,75,500 * ((1.06)^3 - 1) = 1,75,500 * 0.191016 = 33,523.308.

AI explanation

First, find the annual interest rate by dividing the total simple interest by 3, which gives Rs. 10530 per year. Using the simple interest formula, Rate = (10530 * 100) / 175500 = 6%. Now, apply the compound interest formula for three years: CI = P * [(1 + R/100)^3 - 1]. Substituting the values gives CI = 175500 * [(1 + 6/100)^3 - 1], which evaluates to 175500 * 0.191016, meaning the compound interest is Rs. 33523.

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