Question

A sum of Rs.$12,000$ is invested for $3$ years at $18$ % per annum compound interest. Calculate the interest for the third year.

• A. $2700$
• B. $2800$
• C. $2900$
• D. $3000$

Answer 1

Answer: (D)

$3000$

Interest for the first year =$\frac{12000\times 1\times 18}{100}=2160$

Amount after first year = $12000+2160=14160$

Interest for second year =$\frac{14160\times 1\times 18}{100}=2550$

Amount after second year = $14160+2550=16708.8$

Interest for third year =$\frac{16708.8\times 1\times 18}{100}=3000\left(approx\right)$