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

Watch Youtube video of Compound Intrest for better understanding.