Question

8 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?

Answer 1

The simple interest rate is 10% (60%/6 Years)

So, The compound interest on Rs. 12000 @ 10% will be Rs. 3972

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$