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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?

Rs. 2160
Rs. 3120
Rs. 3972
Rs. 6240
Explanation:

Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.

$\therefore$ R =$ \left(\dfrac{100 \times 60}{100 \times 6} \right) $= 10% p.a.

Now, P = Rs. 12000. T = 3 years and R = 10% p.a.

$\therefore$ C.I. = Rs.$ \left[12000 \times\left\{\left(1 +\dfrac{10}{100} \right)^3- 1\right\}\right] $
= Rs.$ \left(12000 \times\dfrac{331}{1000} \right) $
= 3972.
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