Question

A sum of Rs.$8,000$ is invested for $1$ years at $10$ % per annum compound interest. Calculate :interest for the second year.

• A. $880$
• B. $860$
• C. $800$
• D. $1000$

Answer 1

The correct option is A $880$

$\Rightarrow$ Here we have, $P=Rs.8000,T=1$ and $R=10\%$

$\Rightarrow$ $I=\frac{P\times R\times T}{100}$

$\Rightarrow$ $I=\frac{8000\times 10\times 1}{100}$

$\Rightarrow$ $I=Rs.800$

$\therefore$ Interest for first year is $Rs.800$.

$\Rightarrow$ Interest for second year = $800+\frac{10}{100}\times 800=800+80=Rs.880$