# 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. Rs. 2160

B. Rs. 3120

C. Rs. 3972

D. Rs. 6240

E. None of these

**Answer: Option C **

__Solution(By Examveda Team)__

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

A. Rs. 120

B. Rs. 121

C. Rs. 122

D. Rs. 123

E. None of these

A. Rs. 96000

B. Rs. 120000

C. Rs. 124000

D. Rs. 192000

A. Rs. 1000

B. Rs. 1005

C. Rs. 10125

D. Rs. 11025

E. None of these

## Join The Discussion