There is 50% increase in an amount in 5 years at simple interest. What will be the compound interest of ₹12,000 after 3 years at the same rate? ## Page 15 CLICK HERE - JOIN @APNAPDFS

Explanation

Let the principle amount (P) = 100 after 5 year at simple interest the amount = $100 \times \frac{150}{100}$ = 150 Now simple interest = 150 - 100 = 50 $50 = \frac{100 \times 5 \times r}{100}$ r = 10% now, at the same rate compound interest of ₹12000 so- A = $12000 \times \frac{110}{100} \times \frac{110}{100} \times \frac{110}{100}$ A = $12 \times 11 \times 11 \times 11$ A = $12 \times 1331 = 15972$ Now compound Interest = A - P = 15972 – 12000 Compound Interest = 3972