Find the compound interest for third year on certain amount at the rate of 7% if CI for second year is 2700?

Options

A. A. ₹ 2790
B. B. ₹ 2889
C. C. ₹ 2780
D. D. ₹ 2970

Answer

To find the compound interest for the third year when the compound interest for the second year is given as 2700 and the rate of interest is 7%, we can follow these steps:

### Step 1: Understand the relationship between the years
The compound interest for any year is calculated based on the principal amount and the interest accrued from the previous year. The interest for the third year will be calculated on the amount at the end of the second year.

### Step 2: Calculate the interest for the third year
The compound interest for the third year can be calculated using the formula:
\[ \text{CI for third year} = \text{CI for second year} \times \frac{r}{100} \]
where \( r \) is the rate of interest.

Given:
- CI for the second year = 2700
- Rate of interest \( r = 7\% \)

### Step 3: Substitute the values into the formula
Now, substituting the values into the formula:
\[ \text{CI for third year} = 2700 \times \frac{7}{100} \]

### Step 4: Perform the calculation
Calculating the above expression:
\[ \text{CI for third year} = 2700 \times 0.07 \]
\[ \text{CI for third year} = 189 \]

### Step 5: Conclusion
Thus, the compound interest for the third year is 189.

### Final Answer
The compound interest for the third year is **189**.

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