# What will be the Compound Interest? If

Find the compound interest for a sum of ` 9875 in 2 years, if the rate of interest for the first year is 6% and for the second year is 8%:

- 1426.9
- 1399.9
- 1639.9
- None of these

**Answer: (4) None of these**

**Explanation:-**

**Given- **

principal = Rs.9875, Time = 2 ears , Rate of interest for the first year = 6 %

& Rate of interest for second year = 8 %.

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P = principal , R = rate, & T = time.**

Interest for first years = 9875 x 1 x 6 /100

= Rs.592.50

Interest for second year = (9875 + 592.5) x 1 x 8/100

= 10467.50 x 8 x 1/100

= Rs. 837.40

Then, Total compound interest = 592.50 + 837.40

= Rs. 1429.9

Hence, the simple interest = Rs. 1429.9.