Question

There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

Answer 1

Let P = Rs. 100. Then, S.I. Rs.60 and t = 6 years.

∴ R = $($ $\frac{100\times 60}{100\times 6}$ $)$= 10% p.a.

∴ C.I. = Rs. $[$ 12000 × $($ $($ 1 + $\frac{10}{100}{)}^3$ - 1 $)$ $]$

= Rs. $($ 12000 × $\frac{331}{1000}$$)$

= Rs. 3972