# Compound Intrest

**Vedic Maths trick to find Compound Intrest**

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The Simple Intrest on certain sum for **3** years at **20** at per annum is **Rs.240**. Find the corresponding Compound Intrest.

First we will find princple by using the Simple intrest formula:

Simple intrest = SI

Principle = P

Rate = R

Time = T

**SI = **^{P X R X T}/_{100}

**240 = **^{P X 20 X 3}/_{100}

by putting value in this formula we will get the principle value : **Rs.400**

Now we will find Compound Intrest by putting values in the formula given below

Compound Intrest = CI

Rate = r

Year = n

**CI = P[1 + **^{20}/_{100}]^{n} - P

**CI = 400[1 + **^{20}/_{100}]^{3} - 400

**CI = Rs.176**

^{P X R X T}/

_{100}

^{P X 20 X 3}/

_{100}

^{20}/

_{100}]

^{n}- P

^{20}/

_{100}]

^{3}- 400