Multiple choice

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

  1. Rs. 2160

  2. Rs. 3120

  3. Rs. 3972

  4. Rs. 6240

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the principal = Rs. x Then, the amount = 160x/100 Therefore, interest = 160x/100 - x = 60x/100 So, the rate of interest = (SI x 100)/(P x T) = (60x/100) * 100/(x * 6) = 10% Now, we will find the amount of compound interest, which is A = P(1 + R/100)n A = Rs. 12,000(1 + 10/100)3 A = Rs. 15,972 CI = A - P = Rs. (15,972 - 12,000) = Rs. 3972

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