There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs. 12,000 after 3 years at the same rate?
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
Explanation:
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.
R = (100 * 60)/(100 * 6) = 10% p.a.
Now, P = Rs. 12000, T = 3 years and R = 10% p.a.
C.I. = [12000 * {(1 + 10/100)3 – 1}]
= 12000 * 331/1000 = Rs. 3972