Multiple choice

Calculate the compound interest for the second year on Rs. $16,000/-$ invested for $3$ years at $10$% per annnum.

  1. Rs. $1760$
  2. Rs. $1560$
  3. Rs. $1660$
  4. Rs. $1860$
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A Correct answer
Explanation

Principal = 16000, Rate = 10%. Amount after 1 year = 16000 * 1.1 = 17600. Interest for the second year is 10% of the amount at the end of the first year, which is 10% of 17600 = 1760.

AI explanation

To find the compound interest for the second year, we first calculate the amount at the end of the first year, which becomes the principal for the second year. The amount after one year is 16000 plus 10% of 16000, giving 17600. The compound interest for the second year is 10% of this new principal, which is 1760. The result is Rs. 1760.

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