A sum of Rs 18000 is lent at 10% p.a. compound interest, compounded annually. What is the difference between the compound interest for 3rd year and 4th year?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 217.80
1st yr = 10%
2nd yr = 11%
3rd yr = 12.1%
4th yr = 13.31%
Difference = (1.21 × 18000) / 100
= 1.21 × 180
= 217.80