In 4 years at simple interest the principal increases by 32%. What will be the compound interest earned (in Rs) on Rs. 24,000 in 3 years at the same rate?
I = 32% of P
I = PTR/100
$$\frac{32P}{100}=\frac{P(4)R}{100}\rightarrow R=8$$%
Under CI,
Total amount = P$$(1+\frac{R}{100})^{n}$$
=Â Â 24000$$(1+\frac{8}{100})^{3}$$
=Â Â 24000$$(1+\frac{2}{25})^{3}$$
=Â Â 24000$$(\frac{27}{25})^{3}$$
= 24000($$\frac{19683}{15625}$$)
= 30,233.088
CI =30,233.088- 24000 = 6233.088
So the answer is option D.
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