2015 · Q16
There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest on ₹ 12,000 after 3 years at the same rate of interest?
Elementary MathematicsSimple and Compound Interest
- A₹ 2,160
- B₹ 3,120
- C₹ 3,972
- D₹ 6,240
Explanation
60% growth in 6 years at simple interest means rate 10% p.a. Compound interest on ₹12000 for 3 years: 12000(1.1³ − 1) = 12000 × 0.331 = ₹3972 (option C).