Multiple choice

If compound interest received on a certain amount in the 3rd year is Rs. 12,100, what will be the compound interest (in Rs.) for the 4th year on the same amount given that the rate of interest is 9%?

  1. 17,080

  2. 15,669

  3. 13,189

  4. 14,376
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound interest for the 3rd year is P * (1+r)^2 * r. Given 12100 = P * (1.09)^2 * 0.09. The interest for the 4th year is P * (1+r)^3 * r. This is equivalent to (Interest for 3rd year) * (1+r) = 12100 * 1.09 = 13189.

AI explanation

The compound interest for the 4th year equals the interest for the 3rd year plus 9% interest on that 3rd year amount. Using the formula New Interest = Previous Interest * (1 + Rate/100), we get 12100 * (1 + 9/100), which results in Rs. 13,189.

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