Question

If compound interest received on a certain amount in the 2nd year is Rs 1200, what will be the compound interest (in Rs) for the 4th year on the same amount at 10% rate of interest
please give detailed solution.

Answer 1

interest =p(1+R/100)^y - p
1200=p(110/100)^2 -p
1200=p((121/100)-1)
p=1200×100/21
p=40000/7=5714.28

amount=5714.28(110/100)^4=8366.28
interest=8366.28-5718.28=2648