Compound Interest · Discussion forum

General Questions Question 16 – answer, explanation & discussion

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Question 16 Back to Exercise

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

Correct Answer: Option C

Let P = ₹ 100. Then, S.I. ₹ 60 and T = 6 years.

∴ R =		100 x 60		= 10% p.a.
		100 x 6

Now, P = ₹ 12000. T = 3 years and R = 10% p.a.

C.I.

= ₹		12000 x			1 +	10		3	- 1
						100

= ₹		12000 x	331
			1000

= 3972.

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