A man borrowed Rs. 20,000 for 2 years at 8% per year compound interest. Calculate :
the interest of the second year.

Answer

To calculate the interest of the second year for a man who borrowed Rs. 20,000 for 2 years at an 8% per annum compound interest, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the Given Values:**
- Principal (P) = Rs. 20,000
- Rate of Interest (R) = 8% per annum
- Time for the first year (n) = 1 year

2. **Calculate the Amount at the End of the First Year:**
- Use the formula for compound interest:
\[ A = P \left(1 + \frac{R}{100}\right)^n \]
- Substitute the values:
\[ A = 20000 \left(1 + \frac{8}{100}\right)^1 \]
- Simplify:
\[ A = 20000 \left(1 + 0.08\right) = 20000 \times 1.08 = 21600 \]
- Therefore, the amount at the end of the first year is Rs. 21,600.

3. **Determine the Principal for the Second Year:**
- The principal for the second year is the amount at the end of the first year:
\[ \text{Principal for the second year} = Rs. 21,600 \]

4. **Calculate the Interest for the Second Year:**
- Use the simple interest formula for one year since we are only calculating for the second year:
\[ SI = \frac{P \times R \times T}{100} \]
- Here, P = Rs. 21,600, R = 8%, and T = 1 year.
- Substitute the values:
\[ SI = \frac{21600 \times 8 \times 1}{100} \]
- Simplify:
\[ SI = \frac{172800}{100} = 1728 \]
- Therefore, the interest for the second year is Rs. 1,728.

### Final Answer:
The interest of the second year is Rs. 1,728.