Question

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Answer 1

Principal P = Rs 18,000

Rate of interest = 10%

Amount for C.I = P (1+r/100)n(1+r/100)n

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

= 18000 (1.1)2=(1.1)2= Rs 21780

Amount at the end of 3 years = 18000 (1+10/100)3(1+10/100)3= 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 (1+10/100)4(1+10/100)4= 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

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