Multiple choice

What will be the compound interest for the second year on Rs. 18600 for 2 years, the rate of interest for the first year being 8% and for the second year being 15%?

  1. Rs. 4499.90

  2. Rs. 4963.20

  3. Rs. 4237.80

  4. Rs. 3013.20

  5. Rs. 3837.10
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Year 1 interest = 18600 * 0.08 = 1488. Amount after year 1 = 18600 + 1488 = 20088. Year 2 interest = 20088 * 0.15 = 3013.20.

AI explanation

The principal for the second year is the initial sum plus the first year's interest, calculated as 18600 multiplied by 1.08, which equals Rs. 20088. The interest for the second year is 15% of this new principal, so we multiply 20088 by 0.15. This calculation gives the compound interest for the second year as Rs. 3013.20.

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