The simple interest obtained on an amount of ₹ 45000 at the end of 4 yr is ₹ 15300. What would be the approximate compound interest obtained on the same amount at the same rate of interest in the same period?

Question

[A] ₹ 18244

[B] ₹ 19500

[C] ₹ 17363

[D] ₹ 18566

Answer & Explanation
Option: [C]

SI = ₹ 15300

P = ₹ 45000

T = 4 yrs.

R% = (SIx100/PxT)

R% = (15300x100/45000x4)

R% = 8.5% per annum

Now we can calculate the Compound interest from above data.

CI(compound interest) = A-P

Now we calculate A = P(1+R/100)ⁿ

A = 45000(1+8.5/100)⁴

A = ₹ 62363

CI = A - P

CI = ₹ (62363 - 45000)

₹ 17363