Question : A sum of Rs. 3000 amounts to Rs. 6000 in two years at compound interest. The interest for four years is:
Option 1: Rs. 9000
Option 2: Rs. 12000
Option 3: Rs. 6000
Option 4: Rs. 3000
Correct Answer: Rs. 9000
Solution :
Given:
Principal = Rs. 3000
Amount = Rs. 6000
Let the rate of Interest be $R$.
Time = 2 years
Formula used:
Amount = $P(1+\frac{R}{100})^{n}$ where n is the number of years.
Calculation:
$6000= P(1+\frac{R}{100})^{n} = 3000(1+\frac{R}{100})^{2}$
$(\frac{6000}{3000}) = (1+\frac{R}{100})^{2}$
$2 = (1+\frac{R}{100})^{2}$.....................I
Amount in 4 years = $3000(1+\frac{R}{100})^{4} = 3000 \times 2^2$ = Rs. 12000
Interest in 4 years = $12000 - 3000$ = Rs. 9000
Hence, the correct answer is Rs. 9000.
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