Question

The compound interest accrued on an amount of Rs, 18000 at the end of three years is Rs 5,958. What would be the simple interest accrued on the same amount at the same rate in the same period?

• A. Rs 5,100
• B. Rs 5,400
• C. Rs 5,700
• D. Rs 4,800
• E. None of these

Answer 1

The Correct Option is B

To find the simple interest accrued on the same amount at the same rate in the same period, you can use the formula for compound interest: Compound Interest (CI) = Principal (P) * [(1 + Rate\(\frac{R}{100}\)Time (N) - 1]
In this case, the principal (P) is Rs. 18,000, and the compound interest (CI) is Rs. 5,958.
We need to find the rate (R) and time (N) to calculate the simple interest. 
First, let's find the rate (R) and time (N) that result in the given compound interest of Rs. 5,958 over 3 years.
5,958 = 18,000 * [(1 +\(\frac{R}{100}\))³ - 1]
Now, let's solve for (1 +\(\frac{R}{100}\))³:
1 +\(\frac{R}{100}\)=\(\)\(3\sqrt{1.331}\)≈ 1.1
Now, subtract 1 from both sides:
\(\frac{R}{100}\)≈ 0.1
Now, multiply both sides by 100 to find the rate (R):
R ≈ 10%
Now that we have found the rate (R) is 10%, we can calculate the simple interest using the formula:
Simple Interest (SI) =\(\frac{Principal * Rate * Time}{100}\)
SI = \(\frac{18,000 * 10 * 3}{100}\)= 5,400
So, the simple interest accrued on the same amount at the same rate in the same period is Rs. 5,400.
Therefore, the correct answer is Rs. 5,400.
The Correct option is(B)