[wp-beautiful-chart id=”2″]

Simple interest=$latex \frac {Principal*Time in Years* Rate of interest}{100 } &s=2 $

Rate of interest =$latex \frac {Simple interest*100}{Principal*Time in Years} &s=2 $

=$Latex \frac {12000*100}{40000*3}=10% &s=2 $

Compound Interest rate=Principal [(1+ $latex \frac {rate of interest}{100} &s=2 $]^Time – 1]

=40000[(1+ $Latex \frac {10}{100} &s=2 $]³ – 1]

=40000[(1.1)³-1]

=40000(1.331-1)

=40000*0.331

=Rs. 13240