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A sum of ₹3,000 amounts to ₹6,000 in two years at compound interest. The interest for four years is:

  1. A
    ₹6,000
  2. B
    ₹9,000
  3. C
    ₹12,000
  4. D
    ₹3,000

Solution & Step-by-step Explanation

Under compound interest, a sum grows by a constant multiplier over equal periods of time.
Given:
Initial Principal () = ₹3,000
Amount after years () = ₹6,000

The growth factor for a -year interval is:



This means the amount doubles every years.
Therefore, the amount after years () will be:



The total interest earned over years is:

Practice this question

Try it yourself before checking the explanation above.

A sum of ₹3,000 amounts to ₹6,000 in two years at compound interest. The interest for four years is:
A
₹6,000
B
₹9,000
C
₹12,000
D
₹3,000

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