The simple interest on a sum of money for 3 years at 10% per annum is ₹1,500. What will be the compound interest on the same sum for the same period and at the same rate?

Using the Simple Interest formula, the principal is found by calculating 1,500 times 100 divided by the product of 3 and 10, which gives a principal of 5,000. Applying the Compound Interest formula for 3 years at 10 percent, the total amount is 5,000 times 1.1 cubed, which equals 6,655. Subtracting the principal of 5,000 from this amount gives a compound interest of 1,655.

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