39.If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.
A. 1251 B. 1261
C. 1271 D. 1281
Answer:
Clearly, Rate = 5% p.a .,
Time = 3 years
S.I =Rs.1200.
So,Principal =Rs.(100 x 1200/3x5)
=Rs.8000.
Amount =Rs.[8000 x (1+5/100)³]
=Rs(8000x21/20x21/20x21/20)
= Rs.9261
C.I =Rs.(9261-8000)
=Rs.1261.
