Question

A sum of Rs 10,000 is invested at 10% p.a. compound interest for 3 years. Find the CI for the 2nd year.​

Answer 1

Answer:-⬇️

Principal P = Rs 18,000

Rate of interest = 10%

Amount for C.I = P [math](1+r/100) ^n[/math]

Amount at the end of 2 years = 18000 [math](1+10/100)^2[/math]

= 18000 [math](1.1)^2 = [/math] Rs 21780

Amount at the end of 3 years = 18000 [math](1+10/100)^3 [/math]= Rs 23958

Interest for 3rd year = Amount at end of 3rd year - Amount at end of 2nd year

= 23958 - 21780 = Rs 2178

Amount at the end of 4 years = 18000 [math](1+10/100)^4 [/math]= Rs 26353.8

Interest for 4th year = Amount at end of 4th year - Amount at end of 3rd year

= 26353.8 - 23958 = Rs 2395.8

Difference between interest of 3rd year and of 4th year

= 2395.8 - 2178 = Rs 217.8