Question

Saurabh invests Rs. 48,000 for 7 year at 10% per annum compound interest. Calculate the interest for the third year.

• A. Rs. 6,411
• B. Rs. 5,808
• C. Rs. 5,269
• D. Rs. 4,922

Answer 1

The correct option is B Rs. 5,808

$Sum=rs.48000$

$Rate=10$

$Time=2year$

Amount after 2 year

$Amount=P{(1+\frac{R}{100})}^t$

$\Rightarrow 48000{(1+\frac{10}{100})}^2$

$\Rightarrow 48000\times \frac{110}{100}\times \frac{110}{100}=Rs.58080$

For third year

$Sum=58080$

$Time=1year$

Then amount after 3rd year$=58080(1+\frac{10}{100})$

$\Rightarrow 58080\times \frac{110}{100}=Rs.63888$

$\therefore$Interest for third year$=63888-58080=Rs.5808$