<P>Answer:

• Rs 1050.83 will be the compound interest on that sum at the same rate and for the same period.

Step-by-step explanation:

Given that:

• Time period = 3 YEARS
• Rate of Interest = 5% per annum
• SIMPLE interest = Rs 1000

To Find:

• What will be the compound interest on that sum at the same rate and for the same period?

Formula used:

1. S.I. = (P × R × T)/100
2. C.I. = P(1 + R/100)ᵀ - P

Where,

• S.I. = Simple interest
• C.I. = Compound interest
• P = Sum of money/Principal
• R = Rate of Interest
• T = Time period

First we have to find the principal:

⟶ S.I. = (P × R × T)/100

Substituting the values.

⟶ 1000 = (P × 5 × 3)/100

⟶ 1000 = 15P/100

⟶ 15P = (1000 × 100)

⟶ P = 100000/15

∴ Principal = Rs 100000/15 = Rs 6666⅔

Finding the compound interest:

⟶ C.I. = P(1 + R/100)ᵀ - P

Substituting the values.

⟶ C.I. = 6666⅔(1 + 5/100)³ - 6666⅔

⟶ C.I. = 6666⅔(1 + 0.05)³ - 6666⅔

⟶ C.I. = 6666⅔(1.05)³ - 6666⅔

⟶ C.I. = 6666⅔ × 1.157625 - 6666⅔

⟶ C.I. = 7717.5 - 6666⅔

⟶ C.I. = 1050.83 (APPROX.)

∴ Compound interest = Rs 1050.83