A man invests Rs. 9,600 at 10% per annum compound interest for 3 years. Calculate :
the interest for the second year.

Answer

To calculate the interest for the second year on an investment of Rs. 9,600 at a compound interest rate of 10% per annum for 3 years, we can follow these steps:

### Step 1: Calculate the interest for the first year.
- **Formula**: Interest (I) = Principal (P) × Rate (R) × Time (T) / 100
- **Values**:
- Principal (P) = Rs. 9,600
- Rate (R) = 10%
- Time (T) = 1 year

**Calculation**:
\[ I = \frac{9600 \times 10 \times 1}{100} = \frac{96000}{100} = Rs. 960 \]

### Step 2: Calculate the total amount at the end of the first year.
- **Total Amount (A)** = Principal + Interest from the first year
- **Calculation**:
\[ A = 9600 + 960 = Rs. 10,560 \]

### Step 3: Use the total amount from the first year as the principal for the second year.
- **New Principal for the second year (P)** = Rs. 10,560

### Step 4: Calculate the interest for the second year.
- **Values**:
- Principal (P) = Rs. 10,560
- Rate (R) = 10%
- Time (T) = 1 year

**Calculation**:
\[ I = \frac{10560 \times 10 \times 1}{100} = \frac{105600}{100} = Rs. 1,056 \]

### Conclusion:
The interest for the second year is Rs. 1,056.

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