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?

• A. 2360
• B. 3972
• C. 3890
• D. None of these

Answer 1

The correct option is B 3972

Let P = Rs. 100. Then, S.I Rs. 60 and T = 6 years.
$\therefore R=\left(\frac{100\times 60}{100\times 6}\right)=$ 10% p.a
Now, P = Rs. 12000. T = 3 years and R = 10% p.a
$\therefore C.I=Rs[12000\times \{{(1+\frac{10}{100})}^3-1\}]=Rs(12000\times \frac{331}{1000})$
= 3972.