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The simple interest for 3 years on a certain amount at an annual interest rate of 12% is Rs. 6750. What will be the compound interest for the same amo
Question

The simple interest for 3 years on a certain amount at an annual interest rate of 12% is Rs. 6750. What will be the compound interest for the same amount, same interest rate, and same time period, rounded to the nearest rupee?

A.

Rs. 7485

B.

Rs. 7578

C.

Rs. 7592

D.

Rs. 7629

Correct option is C

 
Given:
- Time (T) = 3 years
- Annual interest rate (R) = 12%
- Simple interest (SI) = ₹6750
Formula Used:
1. Simple Interest formula:
2. To find Principal (P) from SI:
3. Compound Interest (CI) formula for annual compounding: Solution:
1. Calculate the principal amount (P): P = (6750 × 100) / (12 × 3) = 18750
2. Calculate the compound interest:
3. Calculate step-by-step:
- Interest factor: 1 + (12/100) = 1.12
- Raise 1.12 to the power of 3: 1.12 * 1.12 * 1.12
- Calculate the total amount: Amount = 18750 × 1.12 × 1.12 × 1.12 =
- Calculate the compound interest: CI = 26342.4 - 18750 = 7592.4 (Approx. 7592)

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