15.Rs.25,000 is invested for 3 years at 12% compound interest p.a. What is the interest in the third year?
[1] Rs.3,763
[2] Rs.3,110
[3] Rs.3,000
[4] Rs.3,450
Answer::
To solve this problem, we should progress to find the interest in the following way:
Interest for 3 years = P - P = 25000 [(1.12)3 – 1] = Rs.10123
Interest for 2 years = P - P = 25000[(1.12)2 – 1] = Rs.6360
Interest for third year = 10123 - 6360 = 3763. Hence, [1] is the correct option.
