The simple interest on a sum of ₹12,000 at the end of 5 years is ₹6,000. What would have been the compound interest on the same sum at the same rate for 3 years when compounded annually?

₹3,972

Principal = 7500 , rate = R% . time = 5 years  and SI = 6000

ATQ,

Simple interest = \(\frac{P × R × T}{100}\) 

6000 = \(\frac{12000 × R × 5}{100}\)

Rate = 10%

Amount = P$(1 \;+\; \frac{R}{100})^t$

Compound interest = Amount - Principal

= 12000 × \(\frac{11}{10}\) × \(\frac{11}{10}\) × \(\frac{11}{10}\) - 12000

= 15972 - 12000

= Rs. 3972