If the compound interest on a sum at 14⅔% per annum for 3 years is ₹1,680, find the simple interest for the same period and rate.

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Accepted Answer

1. Rate $r=14	frac{2}{3}\%=\dfrac{44}{3}\%=\dfrac{11}{75}$.

2. Compound factor $ (1+r)^3=(86/75)^3$, so $(1+r)^3-1=\dfrac{214181}{421875}$. CI $=P\big((1+r)^3-1\big)=1680$.

3. So $P=1680	imes\dfrac{421875}{214181}$.

4. Simple interest for 3 years $=3Pr= P	imes\dfrac{11}{25}=1680	imes\dfrac{421875	imes 11}{214181	imes 25}\approx\)₹1,456.

**Answer:** ₹1,456.

FINAL_ANSWER: b

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