Arithmetic Ability
Compound Interest

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Q.

There is 50% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate ?

View Answer

Correct choice: C

Explanation:

Let p = Rs. 100. Then, S.I is Rs. 50 and time = 5 years. ∴ R = 100×50/100×5 = 10% p.a. Now, p = Rs. 12,000 , T = 3 years and R = 10% p.a. C.I. = Rs. 12000×{(1+10/100)3−1} = Rs. 3972
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