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Aptitude - Compound Interest - Discussion

Discussion Forum : Compound Interest - General Questions (Q.No. 3)
Compound Interest
3.
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
None of these
Answer: Option
Explanation:

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

R = 100 x 60 = 10% p.a.
100 x 6

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

C.I.
= Rs. 12000 x 1 + 10 3 - 1
100
= Rs. 12000 x 331
1000
= 3972.

Discussion:
94 comments Page 4 of 10.
Sammy said:   9 years ago
Thank you so much for explaining the solution.
Sanjay said:   8 years ago
60% is equal to 60/100 i.e., S.I means adding the same rate of interest every year, So here we knew that 60% is increased in 6 years, i.e., Every year it is increased by 10%.

Then, caculate net % for 3yrs.
i.e.
Calculte 1st (10%)and 2nd yr(10%).then result with 3rd yr(10%).

i.e 10+10+(10 * 10)/100 = 21.
Next 21+10+(21 * 10)/100 = 33.1%.

So now just calculate 33.1%12000.
i.e 3972.
Sudarsan said:   8 years ago
Thanks @Neha.
Manisha said:   8 years ago
Thanks @Sanjay.
Dron said:   8 years ago
How to find p=100?
Banshika said:   5 years ago
If the amount is increased by 60%. It should be 160 right?

Then why they took 60 straight to find the answer?
Hari said:   6 years ago
Why we are calculating for 3 years?
Lokesh said:   8 years ago
How Will find P & S.I?
Ramya c said:   5 years ago
Anyone can explain me, why we are calculating for 3 years?
MONI SHANKAR said:   8 years ago
1200*(11/10)*(11/10)*(11/10)=15972.
CI=15972-12000=3972,
P.S : (HERE 11/10=110/100 WHICH MEANS 10% RATE AND CAME FROM STATEMENT 60% INCREMENT IN 6 YEARS.)
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