Multiple choice

Calculate the compound interest for the second year on Rs. $15,000$ invested for $4$ years at $10\%$ per annum.

  1. $1815$
  2. $1996.5$
  3. $1500$
  4. $1650$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound interest for the second year is the interest earned on the amount after the first year. Amount after 1 year = 15000 * 1.10 = 16500. Interest for the second year = 16500 * 0.10 = 1650.

AI explanation

The compound interest for the second year is calculated on the amount accumulated at the end of the first year. The amount after the first year is 15000 plus 10% of 15000, which equals 16500. The interest for the second year is 10% of 16500, resulting in 1650. The answer is 1650.

Keep practicing — related questions