Rs. 10000 is lent at the annual rate of 20 percent for 3 years. Which of the following is statement(s) is/are correct?

I. Simple interest to be received on this sum is Rs. 6000.
II. Compound Interest (compounding annually) to be received on this sum is Rs. 7200.

Correct option is D

Given:
Principal (P) = Rs. 10000
Rate of Interest (R) = 20% per annum
Time (T) = 3 years
Formula Used:
​$$SI = \frac{P \times R \times T}{100}\\CI = P \times \left(1 + \frac{R}{100}\right)^T - P$$​​
Solution:
​$$SI = \frac{P \times R \times T}{100} \\SI = \frac{10000 \times 20 \times 3}{100} \\SI = 6000$$​​
Thus, the Simple Interest to be received is Rs. 6000.
​$$A = P \cdot \left(1 + \frac{R}{100}\right)^T \\A = 10000 \cdot \left(1 + \frac{20}{100}\right)^3 \\A = 10000 \times \left(1.2\right)^3 \\A = 10000 \times1.728 \\A = 17280 \\CI = A - P \\CI = 17280 - 10000 \\CI = 7280$$​​
Thus, the Compound Interest to be received is Rs. 7280.
Hence, Statement I is correct, but Statement II is incorrect.