A sum is increased to 40% in 8 years at SI. What will be the compound interest of Rs. 1600 after 3 y

There is 40% increase in an amount in 8 years at simple interest. What will be the compound interest of Rs. 1,600 after 3 years at the same rate?

Solution -

Simple interest comes 40/8=5 %. Amount from principal of 1600 at 5% for three years becomes 1600*1.05^3=1852.20. Therefore compound interest comes Rs. 252.20