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?

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)