Question

Ramesh invests Rs. 12,800 for three years at the rate of 10% per annum compound interest. Find the interest he earns for the second year.

• A. Rs. 1,162
• B. Rs. 1,243
• C. Rs. 1,408
• D. Rs. 1,591

Answer 1

Answer: (C)

Rs. 1,408

P $=Rs.12800$

Rate of interest $=10$ %

Interest for the first year $=\frac{PRT}{100}$

$\Rightarrow \frac{12800\times 10\times 1}{100}=Rs.1280$

Amount after first year$=12800+1280=Rs.14080$

For Second year

Principal $=Rs.14080$

R $=10$%

T $=1$ year

then Interest for second year$=\frac{PRT}{100}$

$\Rightarrow \frac{14080\times 10\times 1}{100}=Rs.1408$