Multiple choice

P = 8000, Rate of interest = 10\%. Find the difference of compound interest of 3rd and 4th years.

  1. $Rs. 96$
  2. $Rs. 92.8$
  3. $Rs. 96.8$
  4. $Rs. 156.8$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In compound interest, the interest for each year is calculated on the accumulated amount. CI for 3rd year = 8000 × 1.1² × 0.1 = Rs. 968. CI for 4th year = 8000 × 1.1³ × 0.1 = Rs. 1064.8. The difference is Rs. 96.8.

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