Multiple choice

A sum of Rs. 14000 is invested at 15% per annum compound interest for 3 years. Find the interest for the second year.

  1. Rs. 2215

  2. Rs. 2500

  3. Rs. 2515

  4. Rs. 2415
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D Correct answer
Explanation

The interest for the first year is 15% of Rs. 14000, which is Rs. 2100, making the principal for the second year Rs. 16100. The interest for the second year is then 15% of Rs. 16100, which equals Rs. 2415.

AI explanation

The principal for the second year is the initial sum plus the interest accrued during the first year, calculated as 14000 plus 15% of 14000 to equal 16100. The interest for the second year is simply 15% of this accumulated amount of 16100. Therefore, the second year's interest is 0.15 multiplied by 16100, which equals 2415.

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