Question

Calculate the compound interest for the second year on Rs. 8,000/- invested for 3 years at 10% per annum.

Answer 1

For 1^st year

P = Rs. 8000

R = 10%

T = 1 year

A = 8000 + 800 = Rs. 8800

For 2^nd year

P = Rs. 8800

R = 10%

T = 1 year

Compound interest for 2^nd years = Rs. 880