If the simple interest earned on Rs. 49,500 over three years is Rs. 17,820, what is the compound interest on the same principal, rate, and duration? (Round your answer to two decimal places.)

Explanation

Let the annual interest rate be R%. Using the simple interest formula: (49500 × 3 × R) / 100 = 17820, which simplifies to 495R = 5940, giving R = 12%. The compound interest for 3 years at 12% on Rs. 49,500 is calculated as: 49500 × [(1 + 12/100)^3 − 1] = 69,543.94 − 49,500 = Rs. 20,043.94, rounded to two decimal places.