Question

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

Answer 1

Answer:

3972

Step-by-step explanation:

Given: 60% increase in amount in 6 yrs at SI 

To find : CI of Rs 12,000 after 3 yrs at 

Same rate 

We know that, 

SI=100P×R×T

Where, SI = Simple interest 

P= Principle  

R= rate of interest  

t= time period  

and A=SI+P...(2)

Where, A= amount 

Let principal be Rs.P 

A=P+60% of P 

A=P+(10060)P

A=58P...(1)

also from eq (2)

A=SI+P (putting value of A from 

eq (1))

58P=100P×R×6+P

58=1006R+1

R=10%...(3)

for; compound interest 

A=P(1+100R)n

n= time period 

A=12000(1+10010)3      [putting value of R from eq (3)]

A=Rs15972...(4)

Compound Interest = Amount − Principal 

(Putting value of A and P)

=15972−12000

CI = Rs 3972