Question

A sum of Rs $15,000$ is invested for $3$ years at $13$ % per annum compound interest. Calculate the approx interest for the second year.

• A. $2100$
• B. $2200$
• C. $2300$
• D. $2400$

Answer 1

The correct option is B $2200$

Interst for the first year

$=Rs\frac{15000\times 13\times 1}{100}$

$=Rs1950$

Amount after the first year

$=Rs15000+Rs1950$

$Rs16950$

Interest for the second year

$=Rs\frac{16950\times 13\times 1}{100}$

$=Rs2203.5$

$=Rs2200$(approx)