Question

Vineet deposited Rs. 15,600 in a fixed deposit at simple interest at the rate of 10%. After every second year he converts his interest earnings into deposits. His interest in the fourth year is-

• A. Rs. 1,716
• B. Rs. 1,560
• C. Rs. 3,432
• D. Rs. 1,872

Answer 1

Answer: (D)

Rs. 1,872

For first two years,

$P=15,600$

$T=2$

$R=10$%

$\therefore S.I=\frac{PTR}{100}=\frac{15600\times 2\times 10}{100}$

$=Rs3120$.

For next two years,

$P=(15600+3120)$

$=18720$

$T=2$

$R=10$

$\Rightarrow S.I=\frac{18720\times 2\times 10}{100}$

$=Rs$ $3744$.

Since$Rs$ $3744$ is earned in $3^{rd}$ and $4^{th}$ year combined, interest only in $4^{th}$ year $=\frac{3744}{2}=Rs.1872$