Multiple choice

The simple interest obtained on Rs. 15500 is Rs. 5580 after 3 years. In the same time, at the same rate and on the same amount what is compound interest ?

  1. Rs. 6726.834

  2. Rs. 6276.384

  3. Rs. 6267.834

  4. Rs. 6627.438

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

First find rate: SI = P×R×T/100, so 5580 = 15500×R×3/100, giving R = 12%. Now calculate CI for 3 years at 12%: Amount = 15500×(1.12)³ = 15500×1.404928 = 21776.384. CI = Amount - Principal = 21776.384 - 15500 = 6276.384. This matches option B.

Keep practicing — related questions