document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1100256>Question 1100256</A>: <I><SPAN STYLE=\"word-break: break-all;\"> find the compound interest at 5 percent per annum for 3 years on the principal  which gives simple interest of Rs. 2400 at the same rate and for  the same time. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #715287 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=715287\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest of 5% per year for 3 years would be equal to 2400.\r<BR>\n" );
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document.write( "formula for simple interest is i = p * r * n.\r<BR>\n" );
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document.write( "i is the interest<BR>\n" );
document.write( "p is the principal<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods\r<BR>\n" );
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document.write( "formula becomes 2400 = p * .05 * 3\r<BR>\n" );
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document.write( "solve for p to get p = 2400 / (.05 * 3) = 16000\r<BR>\n" );
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document.write( "i = p * r * n becomes i = 16000 * .05 * 3 which becomes i = 2400\r<BR>\n" );
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document.write( "you now know that the principal is 16000.\r<BR>\n" );
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document.write( "the compound interest formula is f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "in your problem, this becomes:\r<BR>\n" );
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document.write( "f = 16000 * (1 + .05) ^ 3\r<BR>\n" );
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document.write( "solve for f to get f = 18522\r<BR>\n" );
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document.write( "the interest earned is equal to f - p which is equal to 18522 - 16000 which is equal to 2522.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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