Multiple choice

The simple interest accured on an amount of Rs.15500 at the end of three years is Rs. 5580. What would be the compound interest accured on the same amount at the same rate in the same period? (upto two places of decimal)

  1. Rs. 6726.48

  2. Rs. 6276.38

  3. Rs. 6267.83

  4. Rs. 6627.43

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

First find the rate: SI = P×R×T/100, so 5580 = 15500×R×3/100, giving R = 12%. Then CI = P(1 + R/100)^T - P = 15500(1.12)^3 - 15500 = 15500(1.404928) - 15500 = 21776.38 - 15500 = 6276.38. The compound interest is Rs. 6276.38, which matches Option B. The key difference is that CI earns interest on accumulated interest.

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