If compound interest received on a certain amount in the 2^nd year is Rs. 1200, what will be the compound interest (in Rs.) for the 4^th year on the same amount at 10% rate of interest?

Because compound interest for each successive year increases by a factor of 1 plus r divided by 100, the interest for the fourth year equals the interest for the second year multiplied by the quantity 1 plus 10 divided by 100 raised to the power of 2. This gives 1200 multiplied by 1.21, which equals Rs. 1452.

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