Multiple choice

If the simple interest on a certain sum of money be Rs.303.60 for 3 years at 4% per annum. What will be the compound interest on the same sum of money and same time and rate? (upto two decimal points)

  1. Rs.310.80

  2. Rs.421.70

  3. Rs.315.90

  4. Rs.350.70

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

Simple Interest: 303.60 = P×3×4/100, so P = 30360/12 = Rs. 2530. Compound Interest for 3 years at 4%: Amount = 2530(1.04)^3 = 2530×1.124864 = Rs. 2845.90. CI = 2845.90 - 2530 = Rs. 315.90. Answer C is correct.

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